Q.What are the major areas of social responsibility of business?

The major areas of social responsibility correspond to a business's four main interest groups:

• Shareholders/owners — a fair, safe return on investment and full information.
• Workers — meaningful work, good working conditions, fair wages and fair treatment.
• Consumers — right quality and quantity of goods at reasonable prices, plus the right to information. …

Why interest groups matter

• Once the social objective of business is accepted, the firm must decide to whom, and for what, it is responsible. A business unit has to identify the specific areas in which to pursue social goals. The chapter identifies four main interest groups.

(a) Responsibility towards shareholders or owners

• Provide a fair return on the capital invested.
• Ensure the safety of that investment.
• Where it is a company, give shareholders regular, accurate and full information about the enterprise's working and its plans for future growth.

(b) Responsibility towards workers

• Provide the opportunity to do meaningful work.
• Create the right kind of working conditions to win workers' cooperation.
• Respect the democratic right of workers to form unions.
• Assure workers of a fair wage and a fair deal.

(c) Responsibility towards consumers

• Supply the right quality and quantity of goods and services at reasonable prices.
• Guard against practices harmful to consumers — adulteration and poor quality, lack of service and courtesy, and misleading or dishonest advertising.
• Give consumers the right to information about the product, the company and other matters affecting their purchase.

(d) Responsibility towards the government and community

• Respect the laws of the country and pay taxes regularly and honestly. …