6. Huge financial resources : Huge financial resources : Some of the business houses have huge financial resources at their disposal, which they can easily use for social projects and help the government with investments for socially needed projects. 7. Consumer's conciousness : Consumer's conciousness : As these days the consumers have become more conscious of their rights. In order to avoid conflicts with consumer associations, business units assume sena; responsibility and produce quality products. 8. Better social environment Better social environment : In all the developing countries of the world education, health and employment are the major concerns Most of the developing countries are suffering from deficit and do not have adequate funds for investment in these areas. Business houses can serve the society by contributing towards health and development of infrastructure.

In the initial years an organization may have to bear the financial burden for meeting its social responsibility, but in the long run it helps the business by generating better public image, increase in sales, improved labour productivity.

##### ARGUMENTS AGAINST SOCIAL RESPONSIBILITY OF BUSINESS

- 1. Ignoring the main objective : The main objective of business is considered to be earning profits. If the business is adopting social responsibility the n the manager's time and effort may be diverted towards social action programs which can adversely affect the profit and interest of shareholders.
- 2. Lead to increase in prices : In order to perform social responsibility, the business has to incur some costs, there by increasing the cost of running the business operations. As this burden increase the cost of commodities it will ultimately have to be borne by the consumer in the form of increased prices.
- 3. Overburden on business : Business organisations are already serving the society by providing goods and services, generating employment, development technology, paying taxes and duties, etc. It is unfair to over-burden the business with other responsibilities like : social responsibility.
- 4. Lack of competence in handing social activities : Business managers have competenceand experience only in business activities but are not familiar with social affairs and luck social skills to discharge social responsibility.
- 5. Lack of accountability : Investment made for social purposes, may lack accountability from the business houses . Business divert funds allocated for social responsibility for business purposes. Charitable institutions associated with the business houses are also sometimes used as a mean of converting the black money into white.
- 6. Need for profit maximization : Though the modern business managements convey that the prime objective of the business is to serve the society yet economically the survival and growth of the business depends upon profit and any deviation from the same may only reduce the resources of firm.

#### Social activities undertaken by some companies

Company/Groups	Major Institutions established
TATA	• Indian Institute of Science MT • Tata Memorial Center for Cancer Research • Tata Energy Research Institute. • Tata Institute for Social Sciences, etc.
BIRLA	• Birla Institute of Scientific Research • BM Birla Heart Research Centre •Birla Institutes of Technology, etc.
GODREJ	• Foundation for Medical Research • Godrej Technical Institute, etc.
HERO	• Hero DMC Heart Institute • BCM Arya Model Senior Secondary school
APEEJAY	• Apeejay Schools •Medical Research Centre • Institutes of management, etc.