Kinds of Social ResponsibilitySocial responsibility of business can broadly be divided into four categories, which are as follows:
- Economic Responsibility: A business enterprise is basically an economic entity and, therefore, its primary social responsibility is to produce goods and services that society wants and sells them at a profit. There is little discretion in performing this responsibility.
- Legal Responsibility: Every business has a responsibility to operate within the laws of the land. Since these laws are meant for the good of the society, a law abiding enterprise is a socially responsible enterprise as well.
- Ethical Responsibility: With Respect to the sentiments of people, thereby not hurting or insulting them while advertising a product, for eg. is expected by the society. There is an element of voluntary action in performing this responsibility.
- Discretionary Responsibility: This refers to purely voluntary obligation that an enterprise assumes, It is the responsibility of the company management to safeguard the capital investment by undertaking only healthy business ventures which give good returns on investment.