Arguments For and Against Business Involvement in Business

Arguments for Social involvement of Business

1. BUSINESS IS A PART OF SOCIETY. Society is a system and business is one of its

subsystems. Every subsystem of a system functions for the betterment of the whole

system and not for its own betterment only. This version applies to business too.

Therefore, business is responsible for the society as a whole and profit motive of the

business cannot have precedence over other motives of the society.

2. SOCIAL RESPONSIBILITY IS IN THE LONG-TERM SELF-INTEREST OF THE

BUSINESS. Existence of any business is because of existence of various social organs

like financiers, employees, customers, society as a whole, etc., and not otherwise.

Therefore, business should provide satisfaction to all these organs on continuous basis

for its continued existence. By discharging social responsibility, the business may

provide this satisfaction.

3. SOCIAL RESPONSIBILITY HAS MORAL JUSTIFICATION. This moral justification

emerges from the fact that if any one takes something from others, he must give

something to them in return. On moral ground, this equation must be based on equity so

that it continues. A business takes various inputs (money, materials, people,

information, etc.) from the society and gives outputs (goods and services) to the society

by using various inputs. System of taking inputs and giving outputs works well only if it

fulfills social requirements.

4. ANY BUSINESS WHICH INVOLVES IN FULFILLING THE ASPIRATIONS OF THE

SOCIETY CREATES BETTER IMAGE IN THE PUBLIC. Creation of this type of image
is a source of satisfaction itself for those who operate business. This also helps in

increasing the business volume, both in terms of taking inputs and giving outputs.

5. GOVERNMENT AIMS AT MAINTAINING EQUILIBRIUM IN THE SOCIETY ON

LONG-TERM BASIS. For this purpose, it tries to ensure that every organ of society

meets social requirements. If any organ fails to do so, government has power to take

actions against it. Since business is an organ of the society, government may take

actions against those business organizations which involve in activities not meeting

social requirements. In order to avoid such actions having long-term negative impact, it

is preferable to adopt social responsibility.

6. FOR MAINTAINING SOCIETY, THERE ARE LEGAL PROVISIONS BUT THESE

PROVISIONS CANNOT BE COMPREHENSIVE BECAUSE OF SOCIAL CHANGES
ON CONTINUOUS BASIS. Therefore, the business has to be socially responsible in
order to avoid anti-social activities so that society is maintained on continuous basis.