Social Responsibility of Economy and Business

In the process of trying to solve the country’s various social issues, new issues, arises. For example, experts have rise questions regarding the responsibilities of business toward solving the nations is ills. At the same time, employers and employees are constantly faced with the situations to which there are no easy solutions, such as when the profit motive and the good society conflict with one another. Should profit, for instance, be reduced in order to reduce possible harm to others? In such cases, decisions have to be made on what is right and what is wrong.

The primary goal of business is to make profit for the owners. Business cannot survive for long if the owners are not rewarded for their efforts. Although profit plays a key role in our business system, a business today also places a great deal of attention on another business goal social responsibility. Social responsibility refers to the duty of a business to contribute to the well being society. Because a community provides a business with certain resources and rights, the business has an obligation to aid the community in which it operates.

Many groups and individual have a stakes in a business. These stakeholders, the owners, customers, suppliers, employees, creditors, government, public and other groups who are affected by firm’s actions expect a business to be responsible and responsive to their interest. Such responsibility may mean a variety of things. Example include donating money to flood victims, sponsoring an exhibition on religion art local museums, providing scholarship to colleges for needy student, training gang member in job related skill, and setting up day care centers for employee’s children.

Thus, social responsibilities on the part of business mean an acceptance of a duty to contribute to the well being of its stake holders. It is often believed that a business has resources to contribute to a community’s well being, and good deeds also translate into favorable publicity for the business, which translated into more sales and profits. A large donation, for example, to support the constructions of a new public swimming pool receives much attention on the radio and television as well as in the newspaper.

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