📖 The Social Responsibility of Commercial Organisations
Understanding a company's duty beyond its profits is crucial in modern society. A commercial organisation's survival and success depend not only on its financial performance but also on its ethical contributions to its employees and the government.
Definition by H.R. Bowen: “Social responsibility of business refers to the obligation of business to pursue those policies, to make those decisions, or to follow those lines of actions, which are desirable in terms of objectives and values of our society.”
Human resources are the most valuable asset of any organization. A company's relationship with the government also forms the bedrock of a stable and fair business environment.
👥 Responsibilities Towards Employees
💼Job Security
Companies should provide job security. Employees should not be kept as temporary staff for long periods; offering permanent roles reduces frustration and builds loyalty.
💰Fair Compensation
Workers must be paid adequate wages and incentives like bonuses, medical allowances, and travel allowances. Prompt payments are a powerful motivator for the workforce.
🏢Working Conditions
A positive work environment is essential. This includes adequate lighting, proper ventilation, and minimizing noise, dirt, and dust pollution.
⛑️Health and Safety
The company must take measures to protect employees' health, such as providing canteen and medical facilities. Regular maintenance of machinery and buildings is vital to prevent accidents.
📈Fair Personnel Policies
Implement impartial policies for recruitment, training, promotions, and transfers. Fairness in these processes ensures employee morale and trust.
🤝Participation in Management
Encourage workers to participate in management through quality circles, work committees, suggestion schemes, or co-partnership to foster a sense of ownership.
📋Grievance Procedure
Establish a formal and efficient grievance procedure to handle employee complaints promptly and fairly, ensuring issues are resolved before they escalate.
🏛️ Responsibilities Towards Government
📊Support Socio-economic Policies
The corporate sector should cooperate with the government to help implement national socio-economic programs and contribute to societal development.
🪙Timely Payment of Taxes
Businesses must pay taxes and duties honestly and on time. Tax revenue is essential for the government to fund public services and infrastructure projects.
📜Observe Rules and Regulations
Companies must strictly adhere to all government rules and regulations. If modifications are needed, they should be suggested constructively for the benefit of society.
⚖️Promote Political Stability
The corporate sector should support political stability, as it leads to a more predictable and peaceful business environment. They should not support elements that cause instability.
❌Avoid Unfair Practices
Companies must not seek unfair advantages from government officials through bribery, corruption, or undue influence. Ethical conduct is paramount.
🌍Earn Foreign Exchange
Large corporations, in particular, should engage in exports to earn valuable foreign exchange for the country, which helps pay for essential imports.
✍️Advise the Government
The corporate sector should provide timely and expert advice to the government on framing policies related to industry, licensing, and trade to foster a better business ecosystem.