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Social responsibility of business is duty to be performed by the business organization so as to maintain a balance between economy and ecosystem. The idea behind this is that the business should not solely focus on profit maximization but embrace its social responsibilities. Some of the social responsibilities are providing a value product to the customers, active participation in development of society, infrastructure and the masses, creating employment opportunities, to follow fair price policy etc.

The following are the major areas of social responsibility of businesses.

1.ECONOMIC RESPONSIBILTY  Business enterprises are economic units that exist to make profits. Therefore, it is the responsibility of every business enterprise to undertake economic activities such as producing goods and services according to the needs and wants of consumers and selling them at reasonable prices.

2.LEGAL RESPONSIBILITY  It is the responsibility of every business to respect the laws and regulations of the country in which it operates, as laws are formed for the betterment of society.

3.ETHICAL RESPONSIBILITY  : This responsibility implies that a business enterprise should follow only those business practices that are in line with the social values that are desirable from the viewpoint of society. This includes respecting religious sentiments and producing quality products.

4. DISCRETIONERY RESPONSIBILITY   This responsibility is completely voluntary in nature. It means that a business enterprise may choose to open a charitable school or hospital for the poor, grant aid to people affected by natural calamities, provide employment opportunities to the physically challenged and so on.


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