The success or failure of the entrepreneur or his organization affects the whole society. Hence, the foremost responsibility of the entrepreneurs and their managers is to fulfill the objectives of the business, so as to successfully operate the business activities.
The efficient operation of the business activities of the enterprise is the first responsibility of the entrepreneur.
Social Responsibility of Entrepreneur Towards Business
In short, the different responsibility of the entrepreneur towards business itself are as follows:
1. Efficient Operation and Management of Business
The entrepreneurs, managers and workers should work together for efficient operation and management of their organization.
They should give topmost importance to the interest of the Institution and should work with dedication, so as to achieve the objectives of the institution.
Other social responsibilities may be assumed only by work performance with the utmost of efficiency.
2. Optimum Utilization of Resources
The entrepreneurs should make most favorable utilization of human and physical resources made available by the society.
So, that satisfactory services may be provided to the human society and their own business may also flourish, develop and safeguard itself.
3. Reasonable Returns on Investment
Entrepreneurs should earn reasonable returns on the capital invested in the business organization.
Earning of reasonable profits is essential for the business of both private and public sectors.
4. To Maintain Image
The entrepreneurs, managers, and employees should maintain the culture and image of the business organization and should make all possible efforts to increase these.
So, that the reputation of the business may go up in society, by keeping moral behavior with all sections of the society.
5. To Save Institutional Interests
The entrepreneur should always have the interest of the business institution.
The wealth and time of the institution should be used for personal interest.
Besides, the Idea of privatization of public property should also be abandoned.
6. Maintain Solvency Position
In this regard, the responsibility of the entrepreneur is to keep withdrawals within limits.
Today is the age of credit capital.
But, credit planning and repayments should be within limits and more emphasis should be on self-financing.
7. Prediction of Uncertainties
The entrepreneurs and managers should develop scientific methods to predict business uncertainties, like boom, depression, etc.
A part of profits should be accumulated to face uncertainties.
8. Formation and Execution of Plans
The entrepreneur has the responsibility of formulation of short term and long term plans and programs, developing policies, and to execute them.
The managers should develop such business policies that may fulfill the requirements of both, the business and Society because these policies are like social decisions.
9. Entry in the Desired Market
The entrepreneur should enter only in the desired market and should not create conditions of monopoly.
10. To Promote Research
The entrepreneur should promote research so that the business and provides goods and services to society.
For that, the Research and Development Department should be established and Research Organisations should be contacted.
Thus, Now You know all the social responsibility of entrepreneurs towards business.