The economic objectives of business are most necessary to its survival and growth. But these can be achieved only when the business h;*s some social responsibilities towards the society. The social obligations are as follows:
a. Provision of employment:
Business involves employment of the factors of production. Hence, expansion of business means creation of more work opportunities to the members of the society.
As self employment is the order of the day, a businessman can earn the respect of the society by employing others, like transport, warehouse etc., for his activities. Thus, the people engaged in the work of aiding trade are provided with gainful occupations and employment.
b. Production of articles of standard quality:
As earlier said, the gaining of profit is directly related with the consumer satisfaction. Hence, a business is bound to produce articles of standard quality. Otherwise, with the stiff competition around, he will be nowhere in the business arena.
c. To charge reasonable prices:
Charging reasonable price is another social responsibility of a business. Prices which cover the costs of production and have a fair margin of profit will be acceptable to the society. Excessive prices will not help the prosperity of any business. It is the social obligation of the business to see that its products become affordable to the consumers in general and not only the rich. Aiming at unreasonable profits may disturb the roots of business.
Howard Bowen has said that “social responsibilities of business include high level of employment, high standard of living, swift economic progress, economic stability and national security”.