Essay, Paragraph or Speech on “Social Responsibility of Business” Complete Essay, Speech for Class 10, Class 12 and Graduation and other classes.

Social Responsibility of Business

Business may be defined as an economic activity carried on in a country, particularly the activity in which other individuals besides the businessman himself are concerned. By its very definition it is a social process wherein individuals carry on common activities making their contribution to the country’s economy and at the same time living on the profit earned from the business. Just as the quality of the officials is important for a good government and its administration, similarly quality of business is essential for proper functioning of a country’s economy.

In countries which have free market economies and where free industrial enterprise is permissible, businessmen have a special role to play. They are the pivotal link between different economic activities of the State as well as of the individuals. In good old days, when laissez faire prevailed, businessmen were free to run their businesses in whatever way they liked. As a matter of fact, the economies of most countries were backward and agriculture was the main occupation of the people all over the world. Even the business of agriculture was simple, as landlordism, which was rampant everywhere, enabled zamindars to exploit the labour of the individual farmers for their personal benefit and there was no check upon their selfish business activities. They exploited the labourers to the maximum, made them work for endless hours and paid them hardly a pittance for their subsistence. It was their calculated policy to keep their labour under-nourished so that it could function as bonded slaves.

With the advent of industrialization and industrial revolutions in many Western countries the factory system emerged. Under this system a large number of workers had to be brought together to run the machines, producing goods on large scale. The processes of political and economic institutions underwent rapid transformation. The exploited labour rose in rebellion in many countries and formed associations and unions to assert their rights. The French Revolution in Europe and the American Revolution across the pacific brought winds of change in human thinking. The concept of welfare . state, the socialism and the dignity of the individual arose of accelerate the eradication of such institutions as slavery, landless labour, forced labour and the like. In these processes of social change, the State had to undertake responsibility for regulating business and industries so as to reconcile the interests of different constituents—farmers, industrialize workers, etc. In advanced countries where large-scale industries sprang up, there was need for adequate legislation to regulate industrial and agricultural relations between the employers and the employees. The employers were made to provide a certain amount of minimum facilities to the employees working on farms and in factories. The working hours were fixed and the conditions of service were guaranteed. The Stage sometimes intervened to regulate the salaries and pay scales to do justice to all parties.

The emergence of new Free States in Africa and Asia and their liberation from colonial empires, led to the industrialization processes throughout the world. The establishment of international organizations during the century—the League of Nations and the United Nations, together with their specialized agencies including the International Labour Organization—brought forth new principles of social behaviour by businessmen all over the world.

The concept of welfare state and ideas of political and economic democracies have given a new tempo to the social responsibilities of business. While there is a plethora of law putting upon businessman obligations and responsibilities, they have to a large extent depended upon their own moral standards in their behaviour. An ideal businessman is one who looks after the interests of his employees as much as he looks after his own interests.

While profit is an important motive in any business, it should not be secured at the cost of any of the obligations enjoined upon businessmen under the law, as it is intended to bring about good relationship with the labour. Satisfied workers are in the long run a greater source of profit for a businessman, on a continuing basis, rather than the dissatisfied workers exploited for some time.

Unfair and unscrupulous, business tactics employed by certain businessmen are never a good policy as they wreck the business sooner than later. They may bring in the profits at an earlier stage but such profits are a gamble and would be drained off in the next or subsequent bout.

Modern society is highly complex. The economy comprises innumerable wings and sectors. The emergence of the public sector has given a new dimension of competition to the private sector. The private sector is now obliged to manage its affairs more respectably if it wants to survive. The theories of socialism, which are pervading modern political thought and action throughout the world, are already putting the private sector to’ caution so that it can survive only if it is making a healthy contribution to the national economy and is not a drain on the national resources or on the citizens in any manner. The concept of private profit has been given a secondary place, the first being the welfare of the masses who nowadays hold the strings of political power.

In India, private sector continues to occupy a significant place in the economy. India’s population is so large that any plan of nationalized industry and agriculture in its entirety is out of question. As such private sector should be broad-based and should not work for profit motive only.