A business firm has social responsibilities towards the different sections of society. The main responsibility of the business is towards the shareholders or investors, general public, environment, local community, government, administrative bodies, consumers and employees. These roles extend to a wide range of activities like having a fair and equitable profit distribution, not exploiting the resources, complying with legal obligations, safeguarding the interest of minority groups etc.
The roles of the firm in their social responsibility can be broadly classified into 4 categories namely environmental responsibility which means that the environment which comprises the business environment both internal and external should be taken into consideration while taking business decisions, ethical responsibility which means that the firm should function ethically and safeguard the interest of the stakeholders in a fair and just manner, Philanthropic Responsibility which aims at making the world a better place to live and economic responsibility which ensures that the firm is attaining the financial goals of the firm in the right and just manner.
The business should always view the profitability goal of the business in a right and just manner. When the firm carries out its operations firm must protect the environment in which the operations are carried out. The firm should always aim at making a profit by following an ethical code of conduct and protecting the interest of the stakeholders of the company at any cost. They are responsible for making the world a better place as they use the resources of the environment to build up their business.
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