Management and Social Responsibility

There are many thinkers who have supported this, but there are others who have expressed their opinion both sides are given as under:

Arguments for social responsibility:

Manager should have social responsibility for the people. Because manager is a person who is very skilled, if he will take interest in the social functions or problem, it will create a good impression on other people living or working under him it will motivate the sub-ordinates working under him. Thus, it creates a favorable impression on the society, which will ultimately helps the business.

Managers have a creative and also communicative skill. As their main task is to have the cordial relations with people inside the organization or outside the organization. The had to interact with his subordinates, superiors and other members relating to business.

So, the managers are very creative and if they will take part in social problems, the society is bound to improve in some kind or others. Managers take the input from the society e.g. education values etc. if managers will take part in social event or they will become responsible towards society, the society is sure to make progress become one man can change the whole environment. It will thus create the source of motivation towards the society. According to System theory, for the efficient working and smooth working small sub-systems should work properly.

  1. Business is a part of society: Since business organizations are a part of society they must have a positive attitude towards the needs of society. Business is only a sub-system of society and this sub-system must contribute to the welfare of the main system.
  2. Avoidance of govt. regulation: If business does not care of its social responsibility, the govt. has to interfere increasingly in the business system, which adversely affects the progress of business.
  3. Long term self-interest of business: the social responsibility of business, if taken care of in the present ensures the success of the organization in the future.
  4. Code of conduct: Members of a profession are bound to follow a code of conduct. Code of conduct includes rules connected with profession, honesty and morality, which form its base.
  5. Business is a creation of the society and so it should respond to the demands of the society: Since business uses the resources which belong to the society. It is necessary that every business are obliged to use the social resources for the common good of society.
  6. The longterm self interests of the business are best served when business assumes social responsibilities: There is a growing realization on the part of the enlightened businessmen that it is in their self-interest to fulfill the demands and aspirations of the society. People who have good environment, education, and opportunity make better employees, customers and neighbours for business than those who are poor, ignorant or oppressed.
  7. It is the moral and right thing to do: It is widely agreed that businessmen today have considerable social power. This power is virtually granted to them by the society, which must have a general relationship with social responsibilities. The social responsibilities of businessmen must be proportionate to their social power. If the businessmen do not assume social responsibilities, their social power must be taken away by the society through government controls and regulations and other measures.
  8. Public image of business would be improved: The business will retain the needed credibility with the public if it performs its social obligations. It will also avoid conflict with the society in its own interest. Good relation with the workers, consumers and suppliers will lead to success of business.
  9. The consumers are well informed: They expect higher quality products at responsible rates. If they don’t get fair treatment form business, they will organize themselves and compel the business its social responsibilities.

Arguments against social responsibility:

The main function of the manager is to govern his organization smoothly and efficiently. So, he should not make himself responsible towards the society. He should not be able to do his work properly. The social problem should be left for those people. So generally take the responsibility (political parties, interest groups etc) of improving are solving the problem of the society. Manager takes the salary for governing his organizing properly not for solving the social problem of the society. Thus, manager should not move his mind towards social responsibilities of the society.

  1. Contrary to the objective of business: Just as the primary objective of players in the play-ground is to achieve victory, in the same way the chief objective of business is to enhance its profits by utilizing its, resources.
  2. Inefficiency in the system: there is no power other than self-interest, which can get work out of people. It owners of business, by ignoring self-interest, start thinking of social responsibility the whole work-system will turn inefficient.
  3. Effects of business values: Business should not have any social responsibility otherwise social values will come to be dominated by business values, which in itself is a painful delaminate. It means that when business is alive to its social responsibility, the people in the beginning will be so thoroughly impressed by it, that in future business will come to occupy a position of predominance the idea of social responsibility of management opinion against.
  4. Conflicting consideration: A business manager will be guided by two considerations, namely, private market mechanism and social responsibilities which are opposite to each other.
  5. Arbitrary power: Business managers will get arbitrary power in the matter of allocation of resources in the welfare of the society. They should have no right to interfere with the external environment of business.
  6. Disregard of marketing mechanism: the doctrine of social responsibilities implies acceptance of socialist view that political mechanism rather than market mechanism is the appropriate way to allocate scarce resources to alternative uses.
  7. Burden on customer: if the price in the market for a product does not truly reflect the relative costs of producing mechanism of the market place will be distorted. The consumers will have to pay higher costs.
  8. Difficult implementation: the concept of social responsibility is ill conceived and ill defined and is difficult to be implemented.

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