The Role of Management in Society

A society achieves the benefits of effective management in terms of industrial development, fairness
to different social groups, satisfaction of consumers, welfare of people, and
proper discharge of social responsibilities. Apart from this providing good
quality products at fair prices to consumers, making timely payment of taxes to
the government, conserving the biological environment and natural resources,
dealing fairly with suppliers, dealers, competitors and other third parties and
preserving the ethical values of a society.

Social Responsibilities of the business

Social responsibility also
called Corporate Social Responsibility (CSR), is an emerging concept that has
now been adopted by most businesses across the world. It refers to the duty and
obligations of an organization intended towards welfare of society. Businesses
need to take certain actions like aligning social goals with corporate goals,
presenting reports regarding the progress of the organization in the area of
social responsibility, judging social performance by applying various
approaches

Social responsibilities towards different interest
groups

Responsibility towards shareholder: Informing shareholders about annual, general and
emergency meeting, providing accurate financial information about the business
to shareholders, providing fair returns on the capital invested by shareholders.

Responsibility towards customers: Abiding by the rules and regulations under the
Consumer Protection Act, 1986, providing high quality products and services at
reasonable prices to customers, ensuring maximum satisfaction of customers by
giving value of money, restricting the selling of adulterated and low quality
products, solving customer’s grievances by opening customer care centers.

Responsibility towards employees: Ensuring the healthy work working environment,
providing fair wagers and bonuses to employees, recognizing and rewarding employees
according to their performances, maintaining transparency in communication,
providing necessary training to employees so that they can better perform their
jobs.

Responsibility towards government: Paying taxes on a regular basis, abiding by the rules
and regulations prepared by the government, refraining from submitting
misleading and false information or documents.

Responsibility towards other stakeholders: Ensuring timely payment to suppliers, providing
accurate and clear information of funds to banks, providing fair margins to
distributors, providing correct and clear specifications to suppliers regarding
raw materials.