Social Responsibilities of Business

Business can exist only within an organized societyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More, or when people are totally self-sufficient, the concept of business has no place in their lives. The organization of society then makes it possible for people to engage in business activity. In return, those in business must make a contribution to the society that sustains their environment. Business people have an obligation to the society in which they live and a responsibility to the others who live in the society with them.

a. Responsibilities to the Owner: Business must see that:

• The owner’s investment has security
• It provides a return on the investment

b. Responsibilities of the State: Business organizations must comply with regulations and laws relating to payments of taxes, excise, and other duties, a publication of audited reports in the case of public companies, and other regulations relating to the conduct of business in the federal, state or local government.

 c. Responsibilities to the Communities: Business and the communities must share mutual benefits. Businesses are expected to provide social amenitiesSocial amenities, or public amenities, refer to places, buildings or infrastructural facilities which are to be shared and to become convergence spots for the local and surrounding communities. Examples include good... More like pipe borne, water, good roads, electricity supply, etc to their host communities. Businesses should as well provide opportunities to indigenesAn indigene is a person, animal, or plant that is native or original to a particular area or region; basically, it refers to someone or something that originates or is naturally... More of the host communities for education, employment, etc.

d. Responsibilities to Consumers: The responsibility of businesses should protect the consumer against useless, inferior, or dangerous products, misleading advertising, and unfair pricing. Any product especially expensive ones should be what it claims to be and do what it is supposed to do. Consumers should also be given the information they need to make intelligent choices as to what to buy and how to pay for it.

e. Responsibility To Shareholders: Business should ensure that appropriate profits are declared and that investors get benefits from their investment as well as ensure that shareholders are kept informed about the goings-on in the company.

f. Other Social Responsibilities Expected Of Business: Several social causes are now receiving the active support of many Nigerian businesses.

Some of these social causes are:

1. Contributions to education.

2. Donations to orphanage and rehabilitations centres.

3. Rural development.

4. Truth in advertising.

5. Apprenticeship schemes for the unemployed.

6. Consumer oriented labeling.

7. Releasing understandable accounting statements.

 8. Prevention of product defects.

9. Contribution to arts.

10. Support for games and sports

11.  Hiring of handicapped citizen.