Explain the social responsibilities of Business Organisations towards Employees and Shareholders.
Commercial organisations have various responsibilities towards their employees.
Some of them are:
i. Providing job security
ii. Paying fair remuneration and allowances
iii. Providing good working conditions
iv. Providing enough opportunities for promotion
v. Providing opportunities to participate in the management (feedback and suggestions)
Responsibilities of a business towards its shareholders:
i. As owners and shareholders invest their money in a business, it is the responsibility of the business enterprise to safeguard their investments and provide them fair and timely returns.
ii. Business organisations should provide complete and accurate information about their progress and financial position to their shareholders. This can be done through reports, statement of profits, etc.
iii. It is the responsibility of business organisations to minimise the wastage of resources so that maximum profits can be earned.
iv. Business units should run the business efficiently. They should make maximum utilisation of the available resources, with no or minimum wastage.