In Business, the responsibilities of entrepreneurs towards the government, professional institutes, and other business institutions are very essential. The government sets the targets for the balanced and rapid economic development of the country.
In Modern Times, the more impact is of socialist thoughts. Hence, every government has directly or indirectly started interfering in business, aiming at public welfare.
Social Responsibility of Entrepreneurs towards Government
The government regulates and controls the business, with the objectives of the systematic economic development of the country and safeguarding the interests of the more common man.
In the various circumstance, governments help the Businessman also and also enacts various laws to having control over their activities.
In short, the following are the responsibility of an entrepreneur towards government:
1. Compliance of Government Rules
The rules framed by the government for business should be fully complied with.
The entrepreneur should follow the laws regarding obtaining licenses for a specified business, the operation of the business, price determination and production, etc.
2. Payment of Taxes
The government imposes various types of taxes, like, Income Taxes, sales tax, exercise duties, tariff duties and wealth tax on the entrepreneur and business, for raising financial resources.
The entrepreneur should honestly pay these taxes.
3. Not to Correct the Government Machinery
The government appoints the officers to implement its policies.
The social responsibility of the entrepreneur is that he may not correct the government officers and employees for getting wrong favors or some Anti-Social purposes.
4. Not to Seek Political Patronage by Unfair Means
The responsibility of the entrepreneurs is that they do not seek political patronage by providing undue economic help to any political party or persons, during elections.
By giving Anti Social activities with political patronage hits the democratic values.
5. To Cooperate with Government for Economic Development
The government sets the targets for the balanced and rapid economic development of the country.
For that, the entrepreneur should provide cooperation to the government by proper utilization of available resources in accordance with the government targets.
For example, the Government of India Lays emphasis on the establishment of industries in rural areas for their development.
Therefore, the entrepreneur should establish industries in rural areas.
Responsibility of Entrepreneurs towards Professional Institutions
In such circumstances, the entrepreneurs have following responsibilities towards these institutions:
- They should contribute to increasing the number of professional institutes.
- They should follow the code of conduct prescribed by professional institutes.
- Grants and other types of assistance is should be provided to professional institutes.
- Preference in employment should be gain to the pass out degree holders and diploma holders of the professional institutes.
- They should participate in seminars, discussions, and conferences organized by professional institutes.
- They should regularly purchase and study the magazines and literature published by the professional Institutes.
- They Should co-operate in research projects organized by the professional Institutes.
- The employees should be encouraged to appear in the examinations held by professionals and promotion and increments etc. should be granted on passing these examinations.
Responsibility of Entrepreneurs towards other Business Institutions
The modern age is the ‘Age of organizations’, since the number of commercial, social and political organizations is increasing, day by day.
Hence, the responsibility of a business organization and its managers towards other business organizations and their managers have also emerged, as follows:
- Healthy competition should continue.
- Participation in business seminars etc. for safeguarding their own interests.
- Undue rise or reduction in prices should be caused by fake dealings in the market.
- Efforts should not be made for knowing the business secrets from the managers and employees of other organizations and institutions.
- Should not encourage politics among the managers of other business Institutions.
- Should not instigate and mislead the suppliers of raw materials and customers.
- Should follow the code of conduct prepared by business confederations etc.
- Should never attempt to Instigate the customers of other organizations, by making wrong criticisms or Instigations.
- Good business relations should be established and maintained with other organizations and Institutions.
- Information should be exchanged for mutual development. Besides, collective Industrial Research may also be organized and proper representation of the industry before the government action should be managed.
Thus, Now you all know the responsibility of entrepreneurs towards government & institutions.