3. Development of backward areas.

- 4. Taking steps to preserve scarce resources.

5. Making contribution for social causes like education, health care and housing facilities for workers, etc.

6. Rehabilitating the population displaced by business units. 7. Dispose off the industrial waste carefully and recycling it if possible.

##### Reasons for the development of social responsibility concept

The concept of social responsibility has developed due to the following reasons

1. Consumerism : Growing consciousness amongst consumers about their rights, enactment of consumer goods and consumer protection laws, have forced the business to take care of consumers interest. 2. Government interference Government interference : Enactment of various acts like Companies Act, Factory Act, etc. have forced the business to consider social obligations. 3. Trade unions : Trade unions : The growing power of trade unions and labour laws have compelled the business to be concerned about labour welfare. 4. Public opinion : Public opinion : Public opinion and threat of government control have made the businessman responsible towards the society. 5. Awareness : Awareness : The spread of education has made the organisations concerned about the quality of life. Organisations recognise that business is a reflection of social objectives and values and is an agency for promoting them. 6. Professionalism : Professionalism : In large business houses the ownership has been separated from managerial functions. The managerial functions now in professional hands. Well educated managers have knowledge about expectations of the society. Managers are no longer considered to have responsibility only to the owner but also increasingly being held responsible for the social effects of their actions.

##### ARGUMENTS IN FAVOUR OF SOCIAL RESPONSIBILITY

1. Dependence of business on society : Dependence of business on society : A business is built by using resources like mines and minerals, farms and fields, agricultural products, rivers and forests, etc. A business operates by using resources from society and earns profit by selling the output to the society. In return it should also perform some duties for the society as well in the shape of social responsibility. 2. Freedom from government control: Freedom from government control: If a business performs its social responsibility properly, it will remain free from government punishments or penalities. Government regulations reduce flexibility and freedom of doing business. 3. Public image : Public image : Adopting social responsibility as an objective will help to improve the public image of business. A good public image is a valuable asset for the business. Some business houses enjoy good reputation because of their social involvement. 4. To compensate for negative implications : To compensate for negative implications : In order to compenstate the society for the negative implications of its actions, a business must take responsibility for its actions like factories which release dangerous fumes into natural environment and cause pollution. As the business houses are creating the problems of pollution, congestion, etc. they must also take the responsibility to handle these problems of the society. 5. Long run profit : Long run profit : The initial cost of performing a social task is high but in long run business can create a public image which is rewarded by shareholders, consumers, etc. Even providing welfare measures to workers will result in improved productivity and increase in sales.