Business Studies · Ch 1 — Nature and Significance of Management
Social Objectives
Social Objectives
Social Objectives
Social objectives refer to the creation of benefits for society. Every organisation — whether it is a business or a non-business entity — is a part of society and therefore has a social obligation to fulfill. This obligation is not optional; it is a fundamental responsibility that comes with being a part of the larger community.
What Social Objectives Mean
- Consistent creation of economic value for various constituents of society.
- This value is not just for shareholders or owners, but for all groups that interact with the organisation — employees, customers, local communities, and the public at large.
Examples of Social Objectives
- Using environmentally friendly methods of production — reducing pollution, conserving natural resources, and adopting sustainable practices.
- Giving employment opportunities to the underprivileged sections of society — providing jobs to people from disadvantaged backgrounds, such as those from rural areas, lower castes, or economically weaker groups.
- Providing basic amenities for the community — setting up schools, healthcare centres, drinking water facilities, and other infrastructure that improves the quality of life for people living near the organisation.
Illustration from the Textbook
The textbook mentions an example (shown in a box in the original text) of how a company can fulfill its social responsibility. The example refers to ITC – Empowering Rural India, which demonstrates how a large business can actively work toward social objectives while also pursuing its economic goals.
Why Social Objectives Matter …
E-Choupal is a digital initiative created by ITC, one of India's largest consumer-product and agribusiness companies, to reach farmers in remote villages who grow soyabean, wheat and coffee on small plots — villages with unreliable electricity, where many farmers had never seen a computer. It gives them a direct marketing channel, cutting out layers of intermediaries and wasteful handling, and delivers real-time prices and customised knowledge that improve their decisions and price discovery. The village lead farmer, the Choupal Sanchalak, bridges the computer terminal and the farmers, and E-Choupal smart cards identify farmers and reward usage. Widely cited as a model of corporate social responsibility, it became a Harvard Business School case study. …