The paper is divided into two parts, first part of the paper is devoted to general description of BSR and its Importance.Another part of the paper is closely related with the main aim of the paper.The main idea is to discover and analyse those factors which have been influencing basic development of organisations today. Presently, there is an increasing concern with the social responsibilities of organisations. This is reflected in part by the extent of government action and legislation on such matters as, for instance, employment protection, equal opportunities, company’s acts, consumer law, product liability and safeguarding the environment (Mullins, 2005). Based on this the social responsibilities of organisations have turned into a legal requirement.
Palmer and Hartley (2002) argue that business organisations should act in a socially responsible manner for two self-evident reasons: one philosophic and the other pragmatic. Philosophically, models of a responsible society require organisations to do their part along with the family and other social institutions (the schools, the religious institutions, etc.). Pragmatically, organisations have to take account of the society’s values, otherwise they will be isolated and therefore their long-term survival will be jeopardised.
Against this backdrop, business organisations have to think of their overall stakeholders, which include:
- Customers: The most immediate, influential and targeted stakeholder for any organisation is the customer or the consumer of its goods or services. There is an obvious controversy as to whether the customer is right in the goods and services they choose to buy from a company. It is true that sometimes customers do not recognise the long-term harmful effects of their choices such as in the case of tobacco, milk products for babies and expensive stereo equipment in the cars when safety equipment are relegated to optional extras (Palmer and Hartley, 2002). However, it is equally true that there is no ethical basis to judge whether provision of such goods and services is right or wrong.
Galbraith (1977) says the ‘customer is the king’ is no more than a myth. He maintains that the modern organisation exercises power to the extent of shaping tastes of consumers to its products. But this power is often buried down to leave nobler causes to surface. He likens this myth with the root cause of colonialism. For colonialism, we saw, was possible only because the myth of higher moral purpose regularly concealed the reality of lower economic interests. And the same is equally true with the moral cause of the business organisation.
Mullins (2005) argues that the responsibilities to consumers may be seen as no more than a natural outcome of good business. However, there are broader social responsibilities including:
a) providing good value for money;
b) the safety and durability of products/services;
c) standard of after-sale service;
d) Long-term satisfaction – serviceability, adequate supply of products/services, and spare parts and replacement parts.
e) Fair standards of advertising and trading; and
f) Full and unambiguous information to potential consumers.
- Employees: social responsibilities of the firms towards