Материал: Management-and-Organization-Behavior

seeking out opportunities for the organization, and negotiation on behalf of the organization. Taken together the ten roles comprise and define the work of the manager, whatever the organizations size and nature of the business.

Review Questions

1.Explain the different levels in management and how the scope of authority and responsibility varies from one level to the other.

2.What are the skills required by a manager as he moves up the hierarchy? What methods do you suggest to equip the managers those skills.

3.Explain the importance of conceptual skills for long term survival of an organisation. How do good conceptual skills a firm gain competitive advantage? Give appropriate examples

4.Examine the different roles played by a manager of a typical business organisation.

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Lesson - 3 : Social Responsibilities Of Business

Objectives

After studying this lesson, you should be able to:

ӹӹUnderstand The Concept Of Social Responsibilities Of Business;

ӹӹExamine Clearly The Interest Of The Various Stakeholders In The Business; And

ӹӹFamiliarize With The Arguments For And Against The Social Responsibilities Of Business.

Lesson Outline

ӹӹThe Concept

ӹӹResponsibilities To Various Groups

ӹӹTowards The Customer

ӹӹTowards The Employee

ӹӹTowards Shareholders

ӹӹTowards Creditors And Suppliers

ӹӹTowards Governments

ӹӹTowards Society At Large

ӹӹThe Differing Perspectives

ӹӹReview Questions

The relationship between an organization and its environment has been examined in the previous lesson. An organization is understood as importing various kinds of inputs such as human and capital resources which are transformed into outputs such as products or services. Thus a business enterprise is part of the larger system, for it imports the inputs from the society and exports the outputs to the society. As a result, an inextricable link between the organization and the society may be seen. Peter F Drucker stated long ago that the moral and economic justification of a firm to exist lies in its making profit.

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In this connection, it may be understood that in the olden days, the mission of the business was purely economic in nature. But as years passed, the role of business organization in the society has undergone a thorough change. Modern societies are increasingly looking up to the business concerns for the reddressal of many of the social problems. Concern of the managers towards the society is now considered as one of the important parameters while giving the awards for best corporate performance/business of year award,etc.,instituted by agencies like FICCI, FII, Business India and so on. As the expectations of the society on business are changing, there is urgent need for managers to understand clearly the concept of ‘social responsibilities of business’ so as to address themselves to the various issues involved.

Social responsibility-Meaning and Scope

According to Keith Davis’ social responsibilities of business refers to “the businessman’s decisions and actions taken to reasons at least partially beyond the firms direct economic or technical interest”. To quote Andrews, “ By social responsibility, we mean intelligent and objective concern for the welfare of society that restrains individual and corporate behavior from ultimately destructive activities, no matter how immediately profitable, and leads in the direction of positive contribution to human betterment variously as the latter may be defined”.

H.R. Bowen’s observation on social responsibility is clearer and point to the specifics of the concept. He suggests that business managers are bound to “pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society”. Thus as the above definitions indicate, the concern for the society on the part of managers imply a particular behavior which is in line with the societal interests. It suggests that refrain from actions detrimental to the interests of the society.

Responsibilities to Various Groups

In a broad sense, business owes a lot to the various groups such as customers, employees, shareholders, government and the community at large in which it exists. These groups in the society are called ‘interest groups’ or ‘stakeholders’ in the business organization. Let us examine

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how an organization responds in socially responsible ways to cater to the growing demands of all these interest groups.

Towards the Customers

Production and supply of quality goods and services at an affordable price is the primary responsibility of business. Customer service should be the motto of the business. It involves offering a fair deal to the customer by indulging in ethical business practices. Therefore every manager in order to serve the customers in an effective way should restrain from:

ӹӹmaking misleading advertisements aimed at deceiving the consumer;

ӹӹgiving wrong or false information about the ingredients, quality, origin, etc., of the product;

ӹӹentering into collusive agreements with other firms to exploit the customers;

ӹӹmaking false claims of being an authorized dealer/importer of certain goods; and

ӹӹgiving misleading names to the products, etc.

Towards Employees

ӹӹproper selection, training and promotion;

ӹӹrecognition of the value of human resource;

ӹӹmaintaining cordial relations with employees;

ӹӹrecognition and encouragement of constructive unionism;

ӹӹfair wage in relation to the cost of living;

ӹӹbetter working conditions;

ӹӹinitiating appropriate measures for the development of human resource; and

ӹӹincrease in productivity and efficiency by recognition of merit, by providing opportunities for creative talent and incentives.

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