GETLARIMER

The primary goal of business is to make a profit for the owners. Businesses cannot survive for long if owners are not rewarded for their efforts. Although profit plays a key role in our business system, businesses today also place a great deal of attention on another business goal—social responsibility. Social responsibility refers to the duty of a business to contribute to the well-being of society Because a community provides a business with certain resources and rights, th business has an obligation to aid the community in which it operates.
Many groups and individuals have a stake in a business. These stakeholders
—the owners, customers, suppliers, employees, creditors, government, the public, and other groups who are affected by a firm’s action—expect a business to be responsible and responsive to their interests. Such responsibility may mean a variety of things. Examples include donating money to flood victims, sponsoring an exhibition on Hindu art at local museums, providing scholarships to colleges for needy students, training gang members in job- related skills, and setting up day-care centers for employees’ children.
Thus, social responsibility on the part of business means an acceptance of a duty to contribute to the well-being of its stakeholders. It is often believed that a business has the resources to contribute to a community’s well-being, and good deeds also translate into favorable publicity for the business, which translates into more sales and profits. A large donation, for example, to support the construction of a new public swimming pool receives much attention on radio and television as well as in the newspapers.