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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES
CHAPTER -6,
Social Responsibility of Business and Business Ethics

Topics: Social responsibility towards different groups.
(Lesson -28)

SOCIAL RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS

Once the social objective of business is recognized, it is important to know to

whom and for what the business and its management are responsible. Obviously,

a business unit has to decide in which areas it should carry out social goals. Some

of the specific responsibilities and enterprise may be outlined as under:

(i) Responsibility towards the shareholders or owners: A business

enterprise has the responsibility to provide a fair return to the

shareholders or owners on their capital investment and to ensure the

safety of such investment. The corporate enterprise on a company form

of organization must also provide the shareholders with regular,

accurate and full information about its working as well as schemes of

future growth.

(ii) Responsibility towards the workers: Management of an enterprise is

also responsible for providing opportunities to the workers for

meaningful work. It should try to create the right kind of working

conditions so that it can win the cooperation of workers. The enterprise

must respect the democratic rights of the workers to form unions. The

worker must also be ensured of a fair wage and a fair deal from the

management.