Question

Does the concept of social responsibility have a role in finance? Briefly, describe its role in your own words.

Answer 1

Since each and every companies are operating within a society where they belong , there financial aspects is subjected to some social responsibilities. Social responsibility is nothing but instead of focusing only on the value of the shareholders , a company will do some social mission to uplift the economically weaker sections of the society. Each and every human has a social responsibility towards the society and environment where they live.

As this , finance also have some social responsibilities. Finance is accumulated from the public as cash for the products or services which companies render. So while reinvesting that finance, society should get some benefits out of it. A socially responsible finance should be utilised for the benefits of the society and environment as well. The Corporate Social Responsibility is an example of how the finance is being reinvested to the stake of the society. Nowadays companies are more focused with proper accomplishment of their social responsibilities.