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.
(image will be uploaded soon)
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 business as per the CBSE syllabus?
The concept of social responsibility in business refers to an organisation's obligation to make decisions and take actions that protect and promote the welfare of society as a whole. It goes beyond the basic requirements of law and profit-making, compelling a business to operate ethically and contribute positively to its workforce, community, and environment.
2. What are the four key types of social responsibility for a business?
According to the established framework, a business has four main types of social responsibility, which are often viewed as a hierarchy:
Economic Responsibility: The primary duty to be profitable and produce goods and services that society needs.
Legal Responsibility: The obligation to operate within the laws and regulations of the land.
Ethical Responsibility: The duty to act in a fair, just, and right manner, even when not mandated by law. This involves conduct expected by society.
Discretionary (Philanthropic) Responsibility: The voluntary responsibility to contribute to society, such as through charitable donations or community support projects.
3. What specific responsibilities does a business have towards its employees and consumers?
A business holds specific responsibilities towards its key stakeholders:
Towards Employees: This includes providing fair wages and salaries, ensuring safe and healthy working conditions, offering opportunities for training and promotion, and respecting their right to form unions.
Towards Consumers: This involves supplying goods and services of the right quality and quantity at reasonable prices, avoiding unfair practices like adulteration and misleading advertising, and offering prompt after-sales service.
4. What is the importance of social responsibility for the long-term success of a business?
Embracing social responsibility is crucial for a business's long-term survival and growth. It helps build a strong public image and enhances brand loyalty, which attracts and retains customers. A socially responsible company often avoids excessive government regulation, boosts employee morale and productivity, and ensures the sustainable use of resources, which is vital for continued operations.
5. Can you provide some real-world examples of different types of social responsibility?
Certainly. Examples help illustrate the concept in action:
An IT company installing solar panels to power its offices is an example of environmental responsibility.
A fashion brand that audits its suppliers to ensure they do not use child labour is fulfilling its ethical responsibility.
A corporation donating funds to build schools in rural areas is an act of discretionary or philanthropic responsibility.
6. How are social responsibility, legal responsibility, and business ethics different yet interconnected?
These concepts are related but distinct. Legal responsibility is the mandatory baseline of conduct defined by law, and non-compliance leads to penalties. Business ethics refers to the moral principles that guide a company's decisions on what is right and wrong. Social responsibility is the broadest concept; it is the practical application of business ethics and includes actions that go beyond legal requirements to benefit society. In essence, ethics provides the moral compass, law sets the minimum rules, and social responsibility is the proactive commitment to do good.
7. Beyond profit, what is the role of a business in environmental protection?
A business's role in environmental protection is a critical aspect of its social responsibility. It involves a proactive commitment to minimise its ecological footprint. Key actions include:
Implementing effective pollution control measures for air, water, and noise pollution.
Adopting clean and eco-friendly technologies in production processes.
Developing robust waste management and recycling programs.
Conducting business operations in a way that conserves natural resources for future generations.
8. How can a business turn the challenge of social responsibility into a strategic opportunity?
A business can strategically leverage social responsibility to create value. By investing in sustainable practices, a company can enhance its brand reputation and differentiate itself from competitors. This attracts environmentally and socially conscious consumers and top talent seeking purposeful work. Furthermore, innovating for sustainability can lead to more efficient processes, reduced costs, and the creation of new products and markets, turning a perceived cost into a source of long-term competitive advantage.
9. What responsibilities does a business have towards the government and the community?
Beyond employees and consumers, a business has duties towards the government and its local community.
Towards the Government: This includes paying taxes honestly and on time, complying with all rules and regulations, and refraining from corrupt practices.
Towards the Community: This involves creating employment opportunities, protecting the local environment from pollution, respecting local customs and traditions, and contributing to community development projects like healthcare and education.
10. Is social responsibility only for large corporations, or do small businesses have a role to play too?
Social responsibility is a universal concept that applies to all businesses, regardless of size. While large corporations may have more resources for large-scale philanthropic projects, small businesses play a vital role at the community level. They can demonstrate social responsibility by treating their employees well, sourcing materials locally and ethically, minimising waste, being honest with customers, and participating in local community events. The principles remain the same; only the scale of application differs.
