question_answer 11)

What do you understand by social responsibility of business? How is it different from legal responsibility?

Answer:

Social responsibility of business refers to its obligation to perform those actions which are desirable in terms of the objectives and values of our society and benefit the community. Business cannot exist with the sole purpose of maximizing profits and has to undertake various activities for public good so as to maintain goodwill among people. Social responsibility is broader than legal responsibility of business. Legal responsibility may be fulfilled by mere compliance with the law but social responsibility includes voluntary obligations towards society not covered by law, along with the obligations laid down by law.