Question

Discuss the different groups that benefited from the Social Responsibility of business?

Answer 1

1. Lack of Conceptual Clarity: The concept of Social responsibility is very vague and amenable to different interpretations.
2. Dilution of Economic Goals: By accepting social responsibility, the business will compromise with economic goals.
3. Lack of Social Skill: Business organizations and their managers are not familiar with social affairs.
4. The burden on Consumers: If a business deals with social problems, the cost of doing business would increase.
5. Responsibility without Power: Business organizations possess only economic power and not social power. It is unjust to impose social responsibilities with social power.
6. Misuse of Responsibilities: Acceptance of social responsibilities will involve the diversion of precious managerial time and talent on social action programs.
7. Lack of Yardstick: Profitability is the common criteria for decision-making in business.
8. Improper Role: The proper role of a business is to use its resources and energies efficiently so as to earn the best possible return on investment within the confines of law and ethics.
9. Over Loading Responsibility: Business organizations are already serving society by providing goods and services, generating employment, developing technology, and contributing to the public exchequer through tax payments.