Answer» - Business is not an independent activity. It interacts with various groups/ classes of people of society associated with business directly or indirectly but with different interests. Business interacts with owners, employees, creditors, government, etc.
- It is quite important to take care of the interests of these different groups of society.
- To do so business has to abide by the laws to maintain the business environment, follow the Employee Welfare Act, Factory Act, Consumer Protection Act, etc.
- Factors like rise in consumer awareness, rules and restrictions imposed by state, consumer associations and education compel a business to fulfill these social responsibilities.
- A business man that ignores these responsibilities may end up facing legal and financial problems and even lose his credibility.
- Hence, a socially responsible business is the need of the hour.
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