What is Social Responsibility?

The obligation of business to act in a manner which will serve in the best interest of society is termed as Social Responsibility. The obligation of business to take decisions and perform actions, which are desirable in terms of the objectives and values of our society is known as Social Responsibility.

In the words of Keith Davis,“Social Responsibility refers to the businessman’s decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interests.”

• Businesses try to accomplish social gains along with economic gains, in which the business is interested. 
• Profit Maximisation should not be the sole objective of social responsibility. The business should think about other people, society, etc. 
• Social Responsibility is a broader concept than legal social responsibility. Legal responsibility can be fulfilled by mere compliance with the law; whereas, in the case of social responsibility, voluntary efforts are involved by businesses for the benefit of society.