Discuss the forces which are responsible for increasing concern of business enterprises toward social responsibility.

Explanation

The following forces have been responsible for increasing concern of business enterprise towards social responsibility are:


(i)Threat of Public Regulation : Threat of public regulation is one important reason due to which business enterprise feels concerned with social responsibility. Democratically elected Govt, have to take care of the interest of different sections of society. Thus they regulate the business behaving in a socially irresponsible manner by passing Acts and legislations regulating the business firms to act in a desired way.


(ii) Pressure of labour Movement : The growing number of educated and organised workers are forcing the business enterprise to pay due regard to the welfare of the workers. The powerful labour movements throughout the world is an example of this.


(iii) Impact of Consumer Consciousness: Development of education and mass media, increasing competition in the market, etc. have made the consumers aware of their rights and powers which has forced business to follow customer-oriented aproach.


(iv) Development of social standards for Business : New social standards consider economic objectives of business enterprise as ligitimate but with the condition that they must also fulfil social needs. Business functioning and performance is to be ultimately judged on the basis of social standards.


(v) Development of Business Education : Educated stakeholders of the business have become more sensitive towards social issues with the development of business education with its rich content of social responsibility.


(vi) Development of Professional Managerial Class : With professionalisation of the ‘management’, now the businesses are prefering the trained educated managers from management institutes and universities who have a positive attitude towards social responsibility along with profit earning.