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Briefly state and explain the case for a corporate social responsibility of a business.

Briefly state and explain the case for a corporate social responsibility of a business.


Expert Solution

Long term self interest of business. In the long run no business enterprise can survive and grow unless it enjoys a good image in the public. Public image of the firm can be improved by serving social interests.

Ensuring law and order.People who feel that they are not getting their due share from business may result to anti-social activities which are harmful to
the business. It is therefore important that business firms should assume their social responsibilities.
Creating favourable environment for business. The business can create a favourable environment for its progress and prosperity by responding positively to social responsibility.
Application of principle of trusteeship. The concept of trusteeship was suggested by a business man Mahatma Gandhi. According to him, a business is created by society and businessman is its trustees. A business man should
know that profits earned by him are to be shared by the community.
Moral justification. There is a growing realization on the part of the enlighted
businessmen that it is their moral duty to serve the society.
Maintenance of free enterprise Voluntary assumption of responsibilities by business is essential to avid public regulation and to maintain viability of the business system.  If the business voluntarily discharge their social obligations need for government regulation is avoided.

The case for social responsibility are long term self interest of business, ensuring law and order, creating favourable environment for business, application of principle of trusteeship and moral justification.

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