Meaning of Social Responsibility: Social responsibility is the obligation of business to act in a manner which will serve in the best interests of the society. Social responsibility of business to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society.

1. Long-term Interest of the Firm: It is in the long-term self-interest of the business to fulfill its social responsibility towards various groups of society, like workers, consumers, shareholders, government officials, etc. A better social set improves its public images and prospects of growth in the long run. The society may also reject an enterprise if it does not care for the social welfare. 

2. Maintenance of Society: If a business does not meet its social responsibilities, then people related to the business may resort to anti-social activities, if they feel that they are not getting their does from the business. This may be harmful for the business. So, business enterprises must fulfill social responsibilities. 

3. Converting Problems into Opportunities: It is a common saying that risk is the reward of profit bearing’. Business is capable of converting risky situations into profitable deals. It not only helps in solving social problems but can also be used effectively as an opportunity for growth.