Page 3 - L2

other. The feeling that business can grow only through exploitation of

society has given way to the belief that long-term benefit of business lies in

serving the society well. So also, a useful institution like business is

recognized as an essential element of a modern civilized society.

(vii) Development of professional, managerial class: Professional

management education in universities and specialized management

institutes have created a separate class of professional managers who have

got an altogether different attitude towards social responsibility as

compared to the earlier class of owner manager. Professional managers

are more interested in satisfying a multiplicity of interest groups in society

for running their enterprises successfully than merely following profit

goals.

KINDS OF SOCIAL RESPONSIBILITY

Social responsibility of business can broadly be divided into four categories, which

are as follows:

(a) Economic responsibility: A business enterprise is basically an economic entity

and, therefore, its primary social responsibility is economic i.e., produce goods

and services that society wants and sell them at a profit. There is little discretion

in performing this responsibility. (b) Legal responsibility: Every business has a

responsibility to operate within the laws of the land. Since these laws are meant

for the good of the society, a law abiding enterprise is a socially responsible

enterprise as well.

(c) Ethical responsibility: This includes the behavior of the firm that is expected

by society but not codified in law. For example, respecting the religious