The business or entrepreneur is a part of society. Business is performed in the society, for the society, with resources of the society. The society also provides the opportunity for development and expansion of the business.
Hence, the business has specific responsibilities for the local community and place, where the business is performed.
Every enterprise, are either in private or the public sector should make efforts to improve the conditions of the public of the surrounding areas, should arrange employment for unemployed and should help the needy person.
Responsibility of Entrepreneur Towards Local Community
In short, the following are the responsibilities of the entrepreneur towards the local community:
1. Encouragement to Healthy Competition
The entrepreneur should encourage healthy competition among the local community and make good quality commodities available to the public at fair prices.
2. To Save Local Environment from Pollution
Risks of pollution of the environment at the factories sites, due to the smoke of the coal, polluted water and manufacturing process cannot be ruled out.
So, the responsibility of the entrepreneur is that the factory may be established at a fair distance from the residential areas may shift the factories to distant places from the residential areas.
Besides, arrangements may also be made to reduce the menace of polluted water and smoke, etc.
Related: Responsibility of Entrepreneur towards Suppliers, Creditors, and Depositor.
3. To Help in Activities of Public Utility
The entrepreneur should cooperate in providing facilities for the public utility to the local community, Like, Education, entertainment, medical, housing, and Libraries, etc.
For that may provide help in the establishment of new schools, parks, hospitals and rest houses, etc.
4. To Provide Employment to Local Community
The entrepreneur should provide more and more employment to the local people of the place, Where he is establishing his business unit or is performing the business activities.
He should invest capital in such business which may provide employment to a large number of people.
The business has also the responsibility of providing employment to the members of the community.
Related: 14 Social Responsibility of Entrepreneurs towards Customers.
5. To Improve Standards of Living
The entrepreneur should make all possible efforts to improve the standard of living of the public.
For that, scholarships may be granted to the children of the employees and other students, employment facilities, suiting disabled persons and orphans may be provided for.
Besides, encouragement may be provided for various socially useful programs of the country, like, family welfare and small savings, etc.
6. To Promote Public Relations
The entrepreneur should provide information to the public about the policies and activities of his business or business organization and should try to understand the feelings of the common man.
Related: 13 Social Responsibility of Entrepreneurs towards Employees.
Responsibility of Entrepreneur Towards World Society
Today the whole world is developing is one society. Means of communication and transportation have substantively developed and distance factor is not very significant.
The superpowers have even started the project of the formation of shape human society.
The impact of business changes on international society is gradually becoming visible.
In short, the responsibilities of an entrepreneur towards world society are as follows:
1. To Follow the Rules of International Trade
This is the responsibility of entrepreneurs that during trade with other countries, he should follow the trade-related rules of those countries.
The entrepreneur should not Resort to undesirable activities, like smuggling, etc.
2. To Avoid Unfair Competition in International Market
The entrepreneur should not indulge in unfair competition in the markets of other countries.
Besides, he should not undertake activities that have adverse effects on the businessman of those countries.
3. Honest Business Dealings
While dealing with foreign countries, full honestly should be too.
Standardized commodities at fair prices alone should be supplied to foreign customers.
Timely payments for purchases from foreign countries should be ensured.
All types of cheating should be avoided, or else I reduce the prestige of the country also.
Related: What is Marketing Mix? 4 Ps of Marketing Mix.
4. To Help Economic Development of Underdevelopment Country
The entrepreneur established new industries in the undeveloped country because such a step helps in economic development in an undeveloped country.
5. To Contribute towards International Peace
Trade or exchange of commodities between the two countries lead to mutual cooperation between these countries and mutual differences get reduced.
In such circumstances, the responsibility of the entrepreneur is that they increase their dealings with the businessmen of various countries, so that world peace may flourish.
Now, You all know the social responsibility of entrepreneurs towards society & the local community.
Read More:
- 13 Characteristics and Objectives of Business Environment (With Examples)
- 9 Key Difference between Balance of Trade (BOT) and Balance of Payments (BOP)
- Sources of Capital for Entrepreneurial Venture – Explained
- Emergence of Entrepreneurial Class: Explained with Examples
- Public Deposits: Importance, Advantages & Disadvantages
- 18 Characteristics of Entrepreneurial Behaviour (Explained)
- 15 Importance of Social Responsibilities of Entrepreneurs
- 8 Role of Entrepreneurs in Balanced Regional Development of Industries
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