7 Arguments for and against social responsibility for business organizations

7 Arguments for and against social responsibility for business organizations

Rationale for the business organizations to fulfill certain social responsibilities is listed here under.

1. Business enterprises are sub systems of the larger society. To fulfill their economic objectives, they will have to draw from the various resources which the society has got. Since it is depending on the society to utilize the various resources that it requires to fulfill its economic objectives, it is quite logical for the enterprises to be responsible to the society.

2. When the business enterprises accept social responsibility then the same will get reflected in all their managerial decisions. If that is so, the operations of the enterprises will always produce something beneficial to the society.

3. Business enterprises because of their operations build up for themselves tremendous amounts of social power. This social power, logically speaking, ought to be matched with social responsibility. Otherwise, there is a threat of the same being misused.

4. Acceptance of some amount of social responsibility will also legitimize the. commercial and economic objectives of the business.

5. One of the professional requirements to manage any business enterprise is to be sensitive to the social environment. Social sensitiveness is difficult to pick up unless otherwise business enterprises are made to have some social responsibilities.

6. The business enterprises could not grow and diversify unless otherwise the economic and societal environment is conducive to their development. The said environments can be made conducive only when the business enterprises make some effort towards it. To make such efforts the enterprises must fulfill some social responsibilities.

7. The changing societal environment will naturally force the Government to enact laws so as to make the business enterprises to have social responsibilities. Hence it is always better for the business enterprises to make some social initiation on their own account and to have some social responsibility before it is enforced on them.