The social responsibilities of entrepreneurs is a Universal concept, which explains the mutual responsibilities of business and the society and these provide inspiration to them for formulating policies and to work for taking decisions, so that their mutual expectations, desires, and expectations may be fulfilled.
Social responsibilities of entrepreneurs are to pursue those policies, to make those decisions, or to follow those lines of actions that are desirable in terms of objectives and values of our society.
Features of Social Responsibilities of Entrepreneurs
Following features of the social responsibilities of the entrepreneurs:
1. Related to Business Activities
The concept of social responsibility is related to business activities, like trade, commerce, industries, and direct service, etc.
In whatever form. It does not include non-business activities, because the entrepreneur bears risks only with profits.
2. Continuous Process
This is a continuous process, because till the accomplishment of business activities will continue, the social responsibilities of entrepreneurs will also go on fulfilling.
Not only that, the policies of an entrepreneur and decisions by them will also go a change like changes occurring in the social values.
3. Coordination between Individual and Social Interests
The concept of social responsibility of the entrepreneur lays stress on establishing coordination between his Individual interest (profit) and social interests (service).
The entrepreneur earns profits by providing good quality commodities to the persons in the society and pays good honorariums staff.
As a result, coordination is maintained.
4. Two Way Traffic
This is two-way traffic because just as the entrepreneurs fulfill their responsibilities towards various sections of the society.
Similarly, various sections of the society should also fulfill responsibilities towards the entrepreneurs.
The business activities cannot be performed with desired success unless both pay attention to each other.
5. Universal Concept
The concept of social responsibilities of the entrepreneur is a Universal concept because it has been accepted by all countries, each area of the business, both the public and private sectors and is being pursued also.
6. Recognition of Doctrine of Trusteeship
This concept subordinates the Trusteeship principle of Mahatma Gandhi because it lays stress on the fact that the entrepreneurs should utilize various resources of the society for fulfilling the overall interest of the society, and not for their own interest alone, and they should regard themselves as the trustees of those resources and not as their Masters.
7. Wide Scope of Responsibilities
The scope of this concept is very wide.
Hence, the entrepreneurs are not responsible for himself only, but also towards various sections of the society.
8. Means of Gaining Social Power
The concept of social responsibilities of the entrepreneur is a source for gaining social power by the entrepreneurs because by fulfilling social responsibilities, he becomes able to gain social power also.
If the entrepreneurs ignore his social responsibilities, his social power will dilute.
9. It is a Natural Spirit
The feeling of social responsibility is the natural and spontaneous spirit of the entrepreneur. It cannot be created by force or by saying by others.
10. Based on Ethical Standards and Good Faith
The social responsibility of entrepreneurs is based on their moral standards and good faith.
So, their own morality and good faith towards various sections of the society alone enable them to fulfill their social responsibilities.
Thus, ethics and social responsibility are important for entrepreneurs.
11. Basis of Success
The fulfillment of social responsibilities in an important element for the success of the entrepreneur because it adds to the reputation of the entrepreneur.
That is why, the approach of the entrepreneurs has changed not in socialist countries, but also in the capitalist countries.
12. Collective and Social Institution
The social responsibility of the entrepreneur is a collective and social institution because these responsibilities are organized and executed for the benefit of the society, and not for the individual.
13. Dynamic and Elastic Concept
The social responsibilities of the entrepreneurs are elastic and dynamic, in terms of their meaning, scope, and definition, because with changes in the culture of the society, moral values also undergo changes and the social responsibilities of the business also change with the cultural changes.
14. Beyond the Limits of Legislations
The social changes of the entrepreneurs are beyond the limits of legislation, because they may neither be covered by-laws, nor it would be sufficient.
Truly speaking, these responsibilities are based on owning them voluntarily and spontaneously.
15. Overall Development of Various Sections
The concept of social responsibilities of the entrepreneurs is helpful in the development of all sections of the society, including the entrepreneur himself.
Therefore, entrepreneurs make the utmost efforts to execute these responsibilities.
All those activities which are associated with the objectives of the entrepreneurs, as to how the interests of all sections of the society may be kept in view and the organization may be operated for the Welfare of the whole society are the social objective of the entrepreneurs.