Explain the social responsibility of commercial organisation towards Employees and Government?

Definition: -H.R.BOWEN defines “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.”

Meaning: -The survival & success of a business depends upon the service of its efficient work force. Human resource or employees is one of the greatest resources of all the resources

1.      Job security: -The Company should provide job security to its employees. The workers should not be kept temporarily for a long time. They must be given permanent jobs. Otherwise they may be frustrated.

2.      Monetary factors: - Workers should be paid adequate wages and other incentives like bonus, medical allowance, travelling allowance; etc Prompt payment often results in higher motivation to the workforce.

3.      Working conditions: - The workers should be provided with good working conditions. There should be adequate lighting and ventilation. Noise, dirt and dust pollution should be avoided.

4.      Health and Safety measures: - The Company should take adequate measures to protect health of the employees. They should be provided with canteen facilities, and medical facilities. Proper maintenance of machines and buildings must be done to prevent accidents.

5.      Proper personal policies: - There must be proper personal policies in respect of transfers, promotions, recruitment, training, etc. There should be no partiality in Promotions and transfers of employees.

6.      Workers Participation in Management: -The Workers must been couraged to take part in management. There are different ways of workers participation in management, such as quality circles, work committee, suggestions scheme, and co-partnership, etc.,

7.      Grievance Procedure: -There should be a proper Grievance Procedure to handle employees’ complaints. Any complaint of the employee must be immediately sorted by following suitable Grievance Procedure.


The Government also expects social assistance from the corporate sector in the following areas:-

1.      Assistance in implementing Socio-economic policies: -The government expects cooperation and assistance from the business sector to assist it in implementing socio-economic programmes

2.      Payment of Taxes: -The government expects the corporate sector to pay taxes and duties regularly. If the corporate sector does not pay taxes and duties on time, then it would be difficult for the government to undertake its plans.

3.      Observance of Government Rules and Regulations: -The government expects strict observances of its rules and regulations on the part of the corporate sector. If the corporate sector has any valid suggestions to modify the rules and regulations, then it should do so in the interest of the society as a whole.

4.      Political Stability: -The corporate sector should work towards the political stability of the country. A stable government often brings more returns and peace in a democratic society. Therefore, corporate sector should not support those elements who are indulging in political instability.

5.      No seeking of Unfair Favours: -The companies should not seek unfair favours from government officials by bribing or influencing them.

6.      Earnings of Foreign Exchange: -Companies, especially the large ones should enter in export trade to earn valuable foreign exchange for the country. This foreign exchange is necessary to pay for vital imports.

7.      Advising the Government: -Corporate sector should provide timely advise to the government in respect of framing various policies, such as export-import policy, licensing policy, industrial policy. Etc,