It includes activities connected with manufacturing, trading, transportation, insurance, warehousing, banking and finance. A business is a part of the society. It should follow the ethical norms of the society. In other words, it should be guided by the principles and practices which are considered right by the society.
Since a business operates in society, it comes in contact with various groups of the society such as owners, workers, customers, suppliers and government. It should fulfill its obligations towards each of these groups or stakeholders. Social responsibilities of business mean the obligation 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.
Social obligations imply the responsibility of business to act in a manner which will serve the best interests of the society.
A business is a social institution. It has interactions with various stakeholders or groups of society such as owners, employees, customers, suppliers, government and society. It should fulfill its obligations to each of these groups.
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