Social Objectives of Business
Business, being a part of the society has obligations towards the society. The major social objectives are Provision of quality goods & Services, Reasonable Prices, Provision of Employment, Payment of Taxes, Contribution to Social Welfare and Better Environment.
They are briefly explained as follows.
1. Provision of quality goods and services
Customer satisfaction is the backbone of modern business. Hence, a business should provide goods and services of best quality. The meaning of quality is not only conformance to standards but also ensuring that customers are satisfied.
For example in the case of food items, quality means wholesomeness as well as satisfying customers tastes, in the case of automobiles quality refers to not only transportation but also adoption of latest technology, styling, safety, fuel economy, features etc..
2. Reasonable prices
A business cannot survive in the long run if it charges excessive prices in order to maximize its own profits. Prices charged should be according to the value offered by the product or service to the consumers. In today’s intense competition, customers demand the world’s best quality at the cheapest price. Products which are affordable, enjoy huge markets.
For e.g. the introduction of 50 paise shampoo sachets by Cavinkare (Chik shampoo) widened the market for shampoos and the product today enjoys a wide customer base.
3. Provision of employment
A business is expected to provide the means of livelihood to the members of the society. Business provides self-employment to the owners and offers jobs to a large number of people.
For e.g. setting up of car plants (Ford and Hyundai), glass manufacturing plants (St.Gobain) has increased employment opportunities, similarly growth of IT firms (TCS, Infosys, Satyam, CTS, Polaris etc.) has increased employment opportunities for software professionals.
4. Payment of taxes
A business should not shut its eyes to its obligations towards the Government. The government provides the infrastructure facilities such as water, roads, ports, power, telecom etc., Therefore, business owes it to the government to pay its tax dues honestly and in time. It must also dutifully abide by the laws of the land.
A business concern is a part of the society. Therefore, the business should contribute in every way towards social welfare. It must not indulge in undesirable practices such as hoarding and black-marketing. It must also contribute liberally to social, cultural and charitable organizations, engage itself in promoting health of the community, setting up educational facilities etc.
For e.g. Tata’s have built an entire township in Jamshedpur comprising of schools, hospitals, employee quarters and provided all the necessary facilities. Infosys donates computers to corporation schools in Karnataka, Polaris Software lends financial support to deprived students, Sakthi Masala and LaserSoft Infosystems provide employment to physically challenged persons, Microsoft has donated computers with Braille system to enable blind persons learn computers and benefit from it.
6. Better environment
Businesses should strive to ensure a cleaner, greener and healthy environment for the community. Business should not cause any type of pollution to the environment. Before starting a business, proper arrangements should be made for controlling any type of pollution.
For e.g., tanneries are required to set up Effluent Treatment plants to treat the waste water, Orchid Chemicals is recycling water used in its pharmaceutical plant to avoid wastage of water resources. Today’s customers have high levels of awareness and any business which causes environmental degradation cannot hope to survive for long.