Evaluate the social Responsibility of Business in India.
Mixture picture:
The India business sector presents a mixture picture about social responsibility J.R.D. Tata who conducted the first social audit in India and perhaps in the world, believed that while Indian industry has done reasonably well on the side of production, of growth and of efficiency, however, judged by the size of the black market, the volume of black money and the general corruption that pervades our economic life its record has often been poor.
Hoarding and black marketing-mercilessly gauge the unfortunate consumer. “Although it is the trader rather than the manufacture who is mainly responsibility for such diversion of goods and for the resulting heavy burden impose on the consumer, the fact remains that, to that extent, corporate management of even o large Indian industries has, perhaps unavoidably, failed in the important obligation of ensuring that their goods reach the consumer at fair prices”. The producer should realize that his responsibility does not end with producing goods and services. He should ensure that whatever is producing reaches the ultimate consumer in time and at reasonable prices.
Today a number of leading companies in India have shown recognition of the social responsibility of the corporate sector. They have been instrumental in setting up hundreds of institutions of public service like schools, colleges, management institutes, dispensaries, hospitals, technological institutes, research institutes (medical, scientific and the technological) ,libraries, Dharamshala, cultural institutes for the dumb, deaf and blind, museums and places of religion worship. Some of the leading enterprises have extended welfare measures like health and medical facilities to people of the surrounding village. They have risen up to help the victims of droughts floods, earthquakes and other natural calamities.
Environmental pollution:
the
problem of environmental pollution caused by industries is very serious. In
India thought some enterprises have taken pollutions abatement measures like
many continue to be major offenders against the environment. Some of public
sector enterprises are notorious for their irresponsibility in this matter.
Trade Unionism:
as have
been rightly pointed out by J.R.D. tata, high standard of behavior and the
discharge of social obligation should be demanded from all economical groups In
the country whose actions have an impact on the public wealth. This applies in
particular to trade unions which have in recent years, acquired and often
misused enormous economic powers. The millions of man-days of productions lost
in India every year owing to labor unrest and the violent form which such
unrest has taken in many cases, indicate the need for a new approach to trade
unionism and recognition of its social obligations.
Participation of Labor in management:
The Participation of labor in
management has been suggested as a remedy for many causes of industrial
unrest. It should be ensured that the “collaboration” between labor and
capital dies not become instrumental in exploiting society. As long as labor gets its slice of
the cake, it would support capital to amass profit by exploiting society.
Public sector:
The social responsibility of
business is usually advocated for the private sector, on the assumption that
the public sector is socially quite responsibility. But the public sector in
India has yet to prove that it is more responsive society than the private
sector. In some cases, the record of the
public sector is more dismal than that of the private sector. As far as the
pollution of the environment is concerned, the public sector is as guilty as
the private. Many public sector enterprises in India have f ailed to discharge
their primary responsibility about increase in the productivities and
production, efficiency in the provision of the service, etc. This led to
mountain losses of many public enterprises. The public sector should generate
surpluses to finance further development programmers. The huge losses incurred
by the Indian public sector are the inevitable outcome of inefficiency,
irresponsibility and mismanagement at various levels. Their failure in
discharging primary duties has made the plight of the common man worse than
shortages, higher prices and more taxes. There is a very wide gap between the
sweet expectations from the public distribution system designed to save the
common man from the clutches of the “unscrupulous private sector” and the
bitter experiences of the way the public distributions system functions. A
social audit is needed in India more of the public sector than the private
sector.
The Sachar committee has suggested that companies in the public sector, which are very much a part of the total corporate sector and account for about 70 per cent of the total investment in the corporate sector, must reckon with the social cost of the social benefits arising out of any given investment. ‘social cost-benefit analysis has been accepted as one of the prime considerations for making any investment in the public sector. It is natural to expect from the private corporate sector, that it will be also show a similar consideration of social cost and social benefit. The accountability of the public sector is in the form of social accountability. Social responsibility of business is another name for social accountability. It is a mere extension of the principal of public disclosure to which the corporation must be subject.