Question

State the responsibilities of business towards government.

Explain any four responsibilities of business towards government.

Answer 1

Government provides incentives for industrialisation. Government has passed many acts and has laid down many rules and regulations for this purpose. It also declares various policies related to business. E.g., the government has passed a policy for the entry of foreign traders in retail trade.

“The personal obligations of the people as they act in their own interest to ensure that the rights and legitimate interests of others are not ignored.” Defined by Koontz and O'Donnell)

Responsibilities towards Government:

1. Timely Payment of Proper Taxes: The Government has levied various taxes on business units, such as excise duty, sales tax, corporate tax, etc. business units should give proper information about products and should pay taxes accurately as per the provisions. The tax revenue helps the government to provide infrastructure and other welfare facilities.
2. Respecting rules and Regulations: Business unit should follow various laws and regulations created by the government. While setting up the business, they must follow guidelines set by the government. However, they can make suggestions to the government to modify the rules if it is in the interest of society.
3. Earning Foreign Exchange: Especially large-scale businesses should enter into export trade to earn foreign exchange. They should enable the government to import capital goods and technical know-how. All rules and regulations pertaining to imports and exports should be strictly followed.
4. Political Stability: For economic growth, national security and political stability are required. A stable government often brings more returns and peace in a democratic society. Business units should not support those groups or individuals who are interested in creating political disturbance.
5. Implementation of Socio-economic Programmes: The Government declares various policies for achieving economic, social and industrial progress of society. Business organisation is expected to help the government in the implementation of various socio-economic programmes.
6. Miscellaneous:
   • Helping government during natural calamities.
   • They should not seek any favour from government officials by bribing or influencing them
   • They should provide complete and correct information to government officials.
   • Giving timely advice to government in framing important policies in field of export-import retail, etc.
   • Providing economic and other help to welfare schemes of the government.