The term social responsibility is defined in various ways. Some people define it as the responsibility of business to perform its basic economic function of producing and supplying products and services in the most efficient manner so as to maximize profits. Others define it as the obligation to consider the interests of society while performing its economic function. Still others view it as the charitable activities to promote education, health, employment, rural development and other social causes.
In fact, social responsibility implies responsibility to society beyond the basic economic responsibility of efficiency and profitability. As an economic agent of society a business enterprise must use its economic power to protect and promote public interest and social values.
- Internal Responsibilities
- External responsibilities
The internal responsibilities include the responsibilities towards the shareholders and the Employee. The external responsibilities include its responsibilities towards consumers, Government and community.