Responsibility is the task that is entrusted by managers to subordinates. It is a moral commitment to complete the work assigned. In other words, it is also defined as “Responsibility is the obligation of an individual to carry out assigned activities to the best of his/her activities”.
The responsibility ends when the person has accomplished the task.
The following points help to understand more the concept of responsibility:
It is the obligation of a person to perform the task.
When a superior delegates authority to perform a certain task, he is answerable to his superiors for those tasks.
Lack of parity should not be there as it will not help in achieving the desired result.
The hierarchy followed is from bottom to top. Every individual is answerable to his/her superior.
Responsibility should be fixed in quantitative terms as it helps in framing standards against which it can be compared. Social Responsibility Of Business Concept.
The concept of social responsibility means that the firm accomplishes its financial goal and serves society as well. Every organ of the society contributes to business growth and success as no business can survive in isolation. This becomes the moral obligation of business to do something in return in favour of society. This responsibility towards society is called social responsibility. A socially responsible firm should seek the welfare of different sections of society and should not solely work on profit maximization.
Ernst and Ernst have identified six areas in which social responsibility is expected:
Energy: It is described as conservation of energy in the business operations and increasing energy efficiency as business demands to do in later stages.
Fair Business Practices: It focuses on the relationship of the company to other special interest groups. It deals with the employment and advancement of minorities, employment and advancement of women, support for minority business, and social responsibility practices abroad.
Human Resources: The activities mainly included under this head are recruiting practice, training programs, job enrichment, wage, and salary levels, mutual trust and confidence, job security, transfer and promotional activities, and occupational health.
Community Involvement: This head covers community activities, health-related activities, education and arts, and other community-related activities.
Products: This head concerns the qualitative aspect of the product. Their utility, serviceability, and safety of products. It moreover includes customer satisfaction, its advertisement, labelling, and packaging of the product. These aspects are important from a marketing point of view.
Environment: This head covers the pollution control in the conduct of business operations. Corporate social responsibility in adopting more efficient technologies to minimize the use of resources and the reduction of waste.
Concept of Corporate Social Responsibility
Every business is to conduct its operation to provide an overall positive impact on people or society surrounding. CSR (Corporate Social Responsibility) requires every business to perform ethically and to improve the living of the society. A voluntary contribution must come from every business. The concept of CSR brings a balance between economical, social, ethical, and societal dimensions of business. It forces every business to conduct its activities in harmony and in an ethical way possible. Through the below pointers, the meaning and concept of CSR will be cleared:
All businesses must make profits, but that should not be at the cost of customers.
CSR promotes every business to run in an ethical way.
All businesses should make voluntary efforts in order to benefit society.
It creates a balance between all dimensions of the business environment.
Concept of Authority and Responsibility
Authority is the right of a superior to give instructions to its subordinates whereas responsibility is the duty assigned to people to get things done in a given time frame. It denotes an obligation on subordinates to get the duties done and arises from the superior-subordinate relationship.
Authority can be delegated and moves downward but responsibility cannot be delegated. The responsibility is owed to subordinates. Hence, no subordinate can delegate his responsibility to people to avoid responsibility. Both are closely related and should have parity between the two. A subordinate is answerable to the authority delegated to him and not beyond that.
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Concept of Responsibility in Management
Generally, in the organization, managers have the authority. They are solely responsible for other people recruited. Responsibility is used in many senses. It means an obligation or liability or accountability. In the words of Koontz and O’ Dennell, responsibility is defined as “ The obligation of subordinate, to whom a superior has assigned a task, to perform the services as required”.
Below are the areas of responsibility where managers have to perform:
Attitude towards upper management.
Behaviour with other groups.
Personal attitudes and values.
Behaviour with subordinates.
FAQs on The Concept of Responsibility in Business
1. What is the fundamental concept of social responsibility in a business context?
The concept of social responsibility in business refers to the obligation of an organisation's management to make decisions and perform actions that benefit and protect the interests of society as a whole, beyond its own direct economic and legal obligations. It is the idea that a business should operate ethically and contribute to economic development while improving the quality of life for its workforce, their families, the local community, and society at large.
2. What are the four main types of social responsibility a business must consider?
According to the NCERT syllabus, a business has four primary types of social responsibility, often viewed as a pyramid:
- Economic Responsibility: The most basic responsibility is to be profitable. A business must produce goods and services that society wants and sell them at a profit to survive and benefit its shareholders.
- Legal Responsibility: A business must operate within the framework of the law. This includes obeying laws related to competition, consumer protection, environmental standards, and labour.
- Ethical Responsibility: This is the responsibility to do what is right, just, and fair, even when not compelled by law. It involves behaviour and conduct that is expected by society but not codified in law.
- Discretionary (Philanthropic) Responsibility: This is the highest level of responsibility, which is purely voluntary. It includes actions like making charitable donations, supporting community projects, or providing aid during natural disasters.
3. How does social responsibility differ from the legal responsibility of a business?
The key difference lies in their scope and nature. Legal responsibility is compulsory; it represents the bare minimum standards of conduct that a business must adhere to as defined by law. Failure to comply results in penalties and fines. In contrast, social responsibility is a much broader and largely voluntary concept. It involves ethical considerations and discretionary actions that go beyond what the law requires, reflecting a company's commitment to societal welfare.
4. Why is it important for a modern business to embrace social responsibility?
Embracing social responsibility is crucial for a modern business for several reasons. It helps in the long-term interest and survival of the firm by building a strong public image and brand loyalty. A socially responsible company can often avoid excessive government regulation. Furthermore, it contributes to a better business environment, ensures the availability of resources for a longer period, and can boost employee morale and attract top talent, ultimately turning business challenges into opportunities.
5. What are a business's key responsibilities towards different groups like consumers and employees?
A business has specific responsibilities towards its key stakeholders as per the CBSE curriculum:
- Towards Consumers: The primary responsibility is to provide goods and services of the right quality and quantity at reasonable prices. This includes ensuring product safety, avoiding misleading advertising, and providing prompt and courteous after-sales service.
- Towards Employees: Responsibilities include providing fair wages and benefits, ensuring safe and healthy working conditions, offering opportunities for personal growth and career advancement, and respecting their democratic rights to form unions.
6. Could you give some examples of corporate social responsibility in action?
Certainly. Real-world examples help clarify the concept of social responsibility:
- A technology company investing in renewable energy sources like solar and wind to power its data centres is an example of environmental responsibility.
- A clothing brand that ensures its suppliers pay fair wages and provide safe working conditions is fulfilling its ethical responsibility towards workers in its supply chain.
- A corporation donating a percentage of its profits to fund educational programs in underprivileged communities is an act of discretionary or philanthropic responsibility.
7. What is the connection between business ethics and the concept of social responsibility?
Business ethics and social responsibility are closely related but distinct concepts. Business ethics refers to the set of moral principles and values that guide the behaviour and decisions within a business. It is about what is morally right or wrong in the workplace. Social responsibility is the practical application of these ethics on a broader scale. It is the duty or obligation of the business to act in a way that benefits society. In simple terms, ethics is the guiding belief system, while social responsibility is the action taken based on those beliefs.
