đ˘ The Social Responsibility of a Commercial Organisation đ¤
đ 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.”
The survival and success of any business fundamentally depend on the dedication and efficiency of its workforce. Employees, or human resources, are the most valuable asset an organization possesses. Fulfilling social responsibilities towards them, and towards the shareholders who provide the capital, is crucial for long-term sustainability and growth.
đĽ Responsibilities Towards Employees đ
- Job Security Employees should be provided with a sense of security in their jobs. Keeping workers on a temporary basis for extended periods can lead to frustration and lower productivity. Offering permanent positions is a key responsibility.
- Fair Compensation đľ Workers deserve adequate wages and financial incentives such as bonuses, medical allowances, and travel reimbursements. Prompt and fair payment is a powerful motivator for the workforce.
- Optimal Working Conditions ěžě A safe and pleasant work environment is essential. This includes providing adequate lighting, proper ventilation, and minimizing noise, dirt, and dust pollution to ensure employee well-being.
- Health and Safety Measures ⛑️ The company must implement robust measures to protect the health of its employees. This involves providing canteen facilities, medical access, and ensuring regular maintenance of machinery and premises to prevent accidents.
- Fair Personnel Policies đ Transparent and impartial policies for recruitment, promotions, transfers, and training are vital. All employees should be treated equally, without any partiality, to foster a positive and just workplace culture.
- Worker Participation in Management đŁ️ Encouraging employees to participate in management decisions can boost morale and innovation. Schemes like quality circles, work committees, suggestion boxes, and co-partnership are effective methods.
- Grievance Redressal Mechanism ⚖️ A formal and effective grievance procedure should be in place to handle employee complaints. Addressing concerns promptly and fairly is crucial for maintaining trust and harmony.
đ° Responsibilities Towards Shareholders đš
- Fair Return on Investment (ROI) Shareholders, as the owners, invest their capital with the expectation of a fair and regular return. The management's primary duty is to ensure the business is profitable and provides good returns.
- Growth and Diversification đ Shareholders expect the management to pursue strategic expansion and diversification. This not only grows the company but also enhances shareholder value and spreads risk.
- Prudent Use of Funds đŞ The funds provided by shareholders must be utilized optimally and efficiently. Management is accountable for using capital productively and will be scrutinized for any wastage or mismanagement.
- Transparent Shareholder Meetings đ¤ Meetings must be conducted fairly and transparently. This includes ensuring fair election processes and giving shareholders a genuine opportunity to voice their opinions and participate in key decisions.
- Proper Disclosure & Transparency đ Management must maintain full transparency regarding the company's affairs. Accounts should be meticulously maintained, audited, and shared with shareholders, who have the right to access these reports.
- Building a Positive Public Image ✨ A strong public image and goodwill are invaluable assets. A respected company attracts better talent, loyal customers, and investor confidence, which ultimately benefits shareholders.
- Periodic Information and Updates đ˘ Shareholders have a right to be kept informed about significant company developments. Regular communication through reports, correspondence, or meetings is essential to maintain their trust and confidence.