Social & Economic objectives of business arguments for and against social responsibilities
The purpose of business enters to produce quality goods and distribute them and do it ethically so as to serve the general welfare. Since the economic and social objectives of business are not mutually exclusive but are intertwined, the management has with social and economic responsibilities. In this context, the function of management is to see that the business enterprises fulfil its purpose by paying investors a fair return on this capital but paying vendors a fair price for the materials and supplies, and by paying the consumers in terms of reasonable price, quality and service and above all by helping our society to function in harmony as an organic whole.
This
function imposes upon the business and its managers a higher responsibility
than that arising out of private property and self-interest. Self-interest and
public goods cannot but kept a pan. The manager must assume responsibility for
public good, because management’s responsibility to the enterprise and to
society is inextricably interwoven. This is based to on the fact that the
enterprise so is an organ of society and that its action have a divisive impact
on the social scene, if a business precise a product to service that is useful
or otherwise of value to the community then it socially desirable that it
continues to function b) Arguments for social responsibilities of business.
- Public needs
have change leading and to change
expectations. Business it suggested received its charter from society and
consequently has to respond to the needs of society.
- Social involvement discourages additional government regulation and intervention; the result is greater freedom and more flexibility in decision making for business.
- Business has a great deal of power, and it should be accompanied by an equal amount of responsibility.
- Social involvements may be in the interest of stock holders.
- Business try to solve the problems that other institution have not been able to solve.
- Business had the resources, specifically, business should be use to talented managers and specialist, as well as its capital resource to solve some of society’s problem.
- Social involvements creates a favorable public image. Thus, a firmly may attract customer employees and investors.
- It is better to prevent social problems through business involvements than to cure them. It may be easier to help the hard core unemployed than to cope with social unrest.
- Problems can become profits. Items that may once have been considered waste. (for example, empty soft drink cans) can be produce used again.
- The creation of a better social environment benefits bot h society and business. Society grains thought better neighborhoods and employment opportunities, business benefits from a better community. Since the community is the source of its work force and the consumer of its products and services.
- Morden society is an interdepended system and the internal activities of the enterprises have an impact on the external environment.
Arguments Against Social Responsibilities of Business:
- The primary task of business is to maximize profits by focusing strictly on economic activities. Social involvement could reduce economy efficiency.
- social involvements can create a weekend international balance of payments situation. The cost of social programs goes. Would have to be added to the price of the product. Thus, companies selling in international of markets would be at a disadvantage when competing with companies in other countries that do not have this social cost to bear.
- Business has enough power and additional social involvement would further increase its power and influence.
- there is no complete support for involvement support for involvement in social actions, consequently, disagreements among groups with different viewpoints, will cause friction.
- Business people lack the social skill to deal with the problems of society. Their training and experience is with economic matter and their skill may not be pertinent to social problems.
- there is a lack of accountability of business to social unless accountability can be established, business should get involved.