The responsibilities of the entrepreneur towards employees and workers are important to know. You may buy the time of a person, may buy his physical presence, may buy the nerve movements in certain volume, but cannot buy the zeal, faithfulness, spirit, dedication, and feelings of a person.
So, the responsibility of the entrepreneur is that he pays sufficient attention to the interest of the employees and workers and keeps them contended because the success and failure of the business depend upon them.
Social Responsibility of Entrepreneurs towards Employees
In short, the social responsibilities of entrepreneurs towards employees and workers are as follows:
1. Reasonable and Attractive Remuneration
The company should be attractive salaries and wages to all employees and workers engaged in various business activities.
At least, it should be sufficient enough for meeting the minimum requirements of the families of the employees and the workers.
Not only that, for their good and economic work, they should be provided incentivizes wages also.
2. Assignment of Right Jobs12 Qualities of Effective Leadership in an Entrepreneur
Rights jobs should be assigned to all employees, according to their abilities and tastes.
Besides, if the nature of the job is tiring and monotonous, additional allowances should be paid for such jobs.
3. To Give Security of Employment
The entrepreneur should provide employment security to the employees of his organization, which will cause the sense of satisfaction among them and they will work with full interest, dedication, and commitment and will feel free from the apprehensions of losing a job and will have the higher degree of faith in the employer.
Related: 10 Social Responsibility of Entrepreneur Towards Owner.
4. To Give Best Working Conditions
Best working conditions mean the provision of pure air, sufficient light, proper temperature, proper space of the workplace, as also arrangements for rest, entertainment, sports and refresh made.
The entrepreneur should provide these facilities to his employees and workers.
5. Providing Opportunities for Individual Development
Every individual wants to develop. So, the responsibility of the entrepreneur is that he should make all possible efforts for the individual development of the employees and may impartially provide them equal opportunities for that.
These opportunities include imparting Education and Training, give timely promotions, transfers at the right time and their participation in the management of the business, etc.
Related: 12 Qualities of Effective Leadership in an Entrepreneur.
6. Development of Mutual Understanding and Trust
The management and employees should develop mutual understanding and trust.
For that, the entrepreneur should not issue directions motivated by personal interest and should not play diplomacy also with the employees.
In case of doubts, mutual consultation and dialogues should be undertaken.
7. Adoption of Welfare Schemes
For assuring social responsibility towards the employees, financial assistance during sickness, unemployment, old age, accidents, and death, should be provided to employees or to their dependents.
Besides, housing facilities, medical facilities, canteens, creches, and entertainment houses, etc.
Should also be provided for the Welfare of the employees.
8. Human Behaviour
The entrepreneur should behave humanly with his employees. They should not be treated as part of some medicine.
In the case of lapses or omissions, they should be made aware of it.
They should not be dealt with inhumanly on their mistakes.
Using bad words, threats of ouster from the job, stopping increments, reversion, etc. should be avoided.3
Related: 14 Nature of Business Environment (With Examples).
9. Establishment of Small Industrial Relations
An entrepreneur may safeguard the interests of the owners, employees, society and the nation, alike by establishing sweet relations with the employees.
For that, the importance of effective communication, effective grievances redressal method, suggestions system, collective bargaining and arbitration system, etc.
Should be fully understood and followed. Disputes should be solved peacefully with mutual understanding.
10. Participation in Profits and Management
Today, the employees have started realizing that the profit of the organization is not of the owner alone.
Hence, employees should also be provided with a share of the profits.
So, it is the responsibility of the entrepreneur that he provides a share in the profit to the employees.
Besides, they should also be provided a share in the management, for which efforts, like the constitution of joint management Council, representation of employees in the board of directors and inviting suggestions from the employees may be attempted.
11. Well Defined Service Conditions
Various service conditions of the employees, like appointment, promotions, transfers, penalties, Suspensions, and dismissals, retirements, service period, etc. should be clear and well defined.
The employees should also have full knowledge of all these service conditions.
12. To Adopt Incentives Wages Scheme
Employees are paid wages for their time and work.
But, these cannot Induce them for more and extra work.
Hence, entrepreneurs should provide incentive wages to their wages, so that they may be inspired for higher quality work, which is beneficial both for the enterprise and the employees.
13. To Corporate in Execution of Labour Laws
The government has enacted several laws to safeguard the interest of the employees and workers.
The entrepreneur has the responsibility to execute these government loans and submit timely reports for their compliance with the government.
Thus, Now you all know the social responsibilities of entrepreneurs towards employees and workers.
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