Q.Explain the meaning of social responsibility of business, and state why a business is said to owe something back to society.
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Start your 14-day free trial to unlock the full solution →Social responsibility of business means the obligation of a business enterprise to take decisions and actions that protect and improve the welfare of society, alongside pursuing its own legitimate objective of earning a profit. It represents a shift away from the purely classical view that a firm's only job is to maximise profit for its owners.
A business is said to owe something back to society because it does not operate in isolation — it draws capital from investors, labour from workers, raw material and land from the community, and depends on the infrastructure and legal order the state provides. Because it draws so heavily FROM society to run its operations, the modern/stakeholder view holds that it must also contribute back to society's welfare, not merely extract value from it. Ignoring this obligation also damages, in the long run, the very foundations (a …
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