Get the answer of: Should business firms assume social responsibilities?
It is argued that business firms are the integral part of the society and they owe some obligations to the society and in modern days, the social responsibilities of the business are increasing.
Every institution is a tool of the society. Institutions are the assets of the society to perform constructive functions in the society for the benefit of the society. Social objectives may be stated as supply of quality goods, providing employment, avoidance of anti-social practices, and human objectives.
The concept of business has been changed over the years. It has changed from product-oriented concept to Customer oriented and further to societal oriented concept. The product oriented concept emphasised only on earning profit.
Their main objective was only earning profit, so it was only referred as profit oriented concept. It hardly emphasised on customer satisfaction. With the passage of time the production oriented concept of business was modified into customer-oriented concept.
This concept came into existence in late 60’s and consumer was given due importance. The concept focused not only on earning profit but also on customer satisfaction. They focused on providing better quality goods and services in reasonable prices.
The early 80’s witnessed the emergence of societal concept of business. This concept placed emphasis not only on earning profit and customer satisfaction but also on social interest. This gave rise to professional approach towards business.
Business is responsible towards society that includes employees, shareholders, investors, consumers, government, environment etc. The approach attempts a balance between
Profit + customer satisfaction + societal Interest