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CHAPTER: SOCIAL RESPONSIBILITY OF

ENTREPRENEURS

EXPLAIN THE SOCIAL RESPONSIBILITY OF THE ENTREPRENEUR TOWARDS


DIFFERENT GROUPS
OR
THE ENTREPRENEUR HAS SOCIAL RESPONSIBILITY - ELABORATE

Entrepreneurial development is the key to achieve all round economic development.


In the context of the new economic scenario where liberalization. Privatisatilon and
globalisation are glorified, the responsibilities of business have undergone radical
changes. Ethical behaviour and social responsibility becomes very important in such
changing conditions. Social responsibility means responsibility of the entrepreneur
towards smooth operation of the society by efficient utilization of national resources
for the greater interest of people.

To remain in business on a sustainable basis an entrepreneur has to exercise his


responsibilities to the following groups
1. Responsibility towards conservation of national resources:
The first and foremost responsibility of the entrepreneur is towards efficient
conservation and utilization of national resources for public good. Resources
like electricity , water, petrol, etc need to be utilized in a manner such that
there is no wasteage.
2. Responsibility towards shareholders:
The shareholders are the owners of the company and it is the responsibility of
the entrepreneur to safeguard the capital invested by the shareholders, and to
provide them adequate dividend on their investment. It is also his
responsibility to provide the necessary information about the running of the
organsation, and information about the financial position of the organization.
3. Responsibility towards customers:
An entrepreneur has to satisfy his customers by following two ways
A] providing quality products to the customers
B]charging reasonable and affordable price for the product.
This will keep the customers happy and give them value for the money paid
by them to the company for the product.
4. Responsibility towards employees:
Entrepreneur must take adequate measures to make the employees
contented in all respects so as to encourage them to contribute their best.
The responsibility towards the employees may also include the following
A] providing at least minimum wages to the employees
B] providing conducive working envirornment for good work culture.
C] provision of social security measures
D] granting weekly holidays
E] settling employees grievances
F] giving opportunity to employees for participation in management
5. Responsibility towards creditors/bankers:
The responsibility towards creditors/ bankers who provide financial assistance
include the following
A]regular payment of principal and interest
B] effective utilization of funds
C] adhering to the repayment schedule without any default
D] restiricting diversion of loans to the uses other than the specific purpose for
which it has been advanced.
6. Responsibility towards community
The community where the enterprise is located also becomes important to the
entrepreneur as he derives profits from the community. The responsibility
towards the community includes
A] generation of employment opportunities for local youth
B] prevention of environmental pollution
C] restricting the problem of congestion housing and crime in the community
where the enterprise is located
D] creating awareness about population pressure and the family welfare
measures
E] reducing the deleterious effects of industrial products on human health and
environmental balance
F] reduction of illiteracy among the people, both for men and women
7. Responsibility towards government
The responsibility towards the govt include the following
A] to pay taxes, duties in time and discourage tax evasion
B] to comply with the govt rules. Procedures and legal requirements
C] to support the socio-economic development policies of the govt
D] to work in close association with the govt for social welfare
8. Responsibility to uphold general values and philosophy of the country
In the Indian context this responsibility includes
A] respect towards ideologies of the society like democracy, freedom and
tolerance
B] fair play in marketing and establishing of enterprises
C] due respect towards secularism
D] emancipation of weaker sections of the society
E] empowerment of women in the society
F] highlighting technological dynamism

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