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Student | Posted on
Social Responsibilty by businesses is a commitment to improve community's well being through discretionary business practices and contribution of corporate resources.
It is said that firms only exist because of it's invaluable services to the society.Since the firms use the resources and inputs of the society,they must give back to the society.This leads to increase in goodwill,customer loyalty and avoid government intervention.
It is a multi layered concept that can be differentiated into economic,legal,ethical and philanthropic responsibilities and such expectations that the society has from the organisation at a point of time.This suggests that the business does not only have to fulfill it's basic responsibilities like economic and legal but also has to be ethical and philanthropic voluntarily in the long run.
1.Economic Responsibility includes earning profits,using resources effectively,generating funds,fairly paid jobs and increasing market value of the firm.
2.Legal Responsibility includes paying taxes,license fees,abiding by labor laws,company laws,etc
3.Ethical Responsibility includes fair trade practices,not getting involved in corporate frauds and scandals and using environment friendly methods for service.
4. Philanthrophic Responsibility includes contributing to healthy environment,generating employment and helping the weaker section of the society.
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