Top 10 Social Responsibilities of Entrepreneurs in INDIA

Freedom gives birth to their responsibilities. Since this statement applies to all citizens of any nation, the entrepreneur may also not remain untouched by it. In our country, freedom of business has been granted to the entrepreneurs, excepting a few areas. So, There is Fulfillment of social responsibilities by Indian entrepreneurs at critical evaluation.

Social Responsibilities of Entrepreneurs in INDIA
Social Responsibilities of Entrepreneurs in INDIA

As a result, not only some responsibilities have emerged for them, they have also fulfilled that these responsibilities. But, overall analysis, it is reflected that the position in this regard is not highly satisfying.

Today, our entrepreneurs have been blindly worshipping economic man. They have intense competition for becoming rich or with best possible resources, by hook or Crook.

Social Responsibilities of Entrepreneurs in India

The social responsibilities of entrepreneurs, in the Indian context, may be evaluated with the help of the following points:

1. Towards Itself

History is evident in the fact that most of the private entrepreneurs of India have very well fulfilled the social responsibilities towards themselves.

They have earned huge profits and have reinvested the profits which have resulted in the development and expansion of their business. Although, some business organizations closed within a few years of their start.

But, accumulated funds of most of the business organizations have become substantially heavy. Company organizations have also well flourished. Besides, Cooperative societies and supermarkets also came into existence.

Related: 15 Characteristics of Social Responsibilities of Entrepreneurs.

However, they could not succeed due to constraints of financial and managerial resources. However, now many supermarkets have again becomes operational.

The loss has been incurred by some public sector enterprises due to the decline in the efficiency of Management and employees.

But, some other enterprises in the public sector have also made efforts to reduce their losses but could not succeed in that and had to be closed.

So, it may be said that except for the failure of some business Institutions, the entrepreneurs have been broadly successful in fulfilling responsibilities Towards themselves.

Bonus: 10 Social Responsibility of Entrepreneur Towards Business.

2. Towards Owners or Shareholders

Over the last few years, the number of shareholders in India has substantially increased, resulting in an increase in invested capital of the companies. Middle-class people have started making investments of their savings in shares.

However, the companies have failed in fulfilling their social responsibilities towards the owners and the shareholders.

Adequate dividends are not provided to them, they are also not informed about the facts of the company.

The groups engaged in operation and control of the company often exploit other the shareholders. Not only that the owners also lack the tendency to attend the meetings of the company.

Related: 10 Social Responsibility of Entrepreneur Towards Owner.

The meeting of the company is generally attended by the shareholders associated with the directors.

Some high investing companies have gained a dominating role in the operation and management of most of the companies.

The members of the business house are the holders of most of the shares. As a result, voting rights have concentrated only in a few hands.

To check all such practices, the government has made amendments in the Companies Act, from time to time. Presently also, the proposal for amendments in Companies Acts.

3. Towards Employees

The Indian entrepreneurs have shown indifference in fulfilling social responsibilities towards the employees. Even today, they treat employees as ‘Object of Purchase and Sale’ and have no hesitation in doing unhuman behavior with them.

In spite of the existence of several acts, regarding wages, bonus, labour welfare, health and security, the entrepreneurs make attempts to violate these provisions of these Acts.

If the employees Resort to talks, slogan raising and demonstrations for acceptance of their reasonable demands, to safeguard their rights, their movement is crushed through Police Force.

Related: 26 Challenges in Way of Social Responsibilities of Entrepreneurs.

It does not mean that all the entrepreneurs are alike. Some entrepreneurs like Tata, Birla, mufatLal, reliance etc. have fulfilled responsibilities towards the employees.

But, in general, the conditions of the employees are not satisfying.

4. Towards Suppliers

The Indian entrepreneurs have realized their responsibilities towards the suppliers, to some extent. But, some entrepreneurs exploit the supplying by forming an association.

For example, the associations of the entrepreneurs unilaterally decide to prices of jute, sugarcane, cotton, oilseeds, and fruits etc.

In the season, which is quite low and the producers of these commodities are Virtually compelling to sell commodities at these prices. Besides, in spite of the commodity being of good quality, it is declared to be substandard and is purchases at low prices.

Several other expenses are also be forced to be borne by the sellers.

Unhealthy competition among Cooperative Institutions and individual suppliers are also encouraged, to serve own interests.

Bonus: 15 Suggestions for Entrepreneurs to Alert about their Responsibilities.

In spite of the determination of minimum support prices for agricultural commodities, generally, the entrepreneurs do not feel hesitation in exploiting the poor farmers.

5. Towards Consumers and Customers

Fulfilling social responsibilities towards the customers and Consumers is the result of competitions, alone.

The businessmen lack promptness for the fulfillment of responsibilities even towards the customers and the consumers.

That is why, they do not feel any hesitation in resorting to adulterations, black marketing, hoardings, False advertisements, artificial scarcities, low weights and measurements, and other malpractice.

However, some Businessman has also made several efforts to improve services to the consumers. Several producers and manufacturers have got the commodities standardized and have improved their qualities.

They also provide information to the consumers regarding the quality and price of the commodities.

Appreciable activities, like, after sale service, providing information about various uses of the commodity inviting suggestions from the consumers have also been undertaken, in The Mental interest of the producers and the consumers.

Related: Social Responsibility of Entrepreneurs towards Government & Institutions.

6. Towards Local Community

Some entrepreneurs have remarkably fulfilled their social responsibilities in this regard.

Social Responsibilities of Entrepreneurship
Social Responsibilities of Entrepreneurship

They have established several Institutions for providing social services, like – schools, colleges, management education Institutions, health centres, hospitals research centres, yoga centres, libraries, cultural Institutions, museums, and temples etc.

They have also fulfilled their social responsibilities towards the community to make the menace caused by floods and drought, tsunami, and other natural climates etc.

But, it is worrying that many public sector and private sector enterprises have polluted the natural environment, which is harmful to all.

7. Towards Debtors

These days, most of the Businessman utilize loan capital and as a resulting role of the debtors has developed in the business field.

The entrepreneurs have, however not succeeded much in fulfilling their responsibilities towards the debtors.

Some entrepreneurs and Businessman Resort to corrupt practices for obtaining loans.

They also do not make timely payments of the installments and interest.

Besides, try to obtain additional loans by declaring the Business organization as a sick unit.

Related: 8 Role of Entrepreneurs in Balanced Regional Development of Industries.

8. Towards Professional Institutes

The business institutions have given preference to the degree holders and diploma holders of the professional institutes, in providing employment. It has enhanced the tendency to participate in the seminars organized by professional institutes.

But, some entrepreneur and Businessman participate in the seminar only for the sake of establishing their personal reputation.

Although business organizations have an interest in marketing research projects, they are indifferent towards other research projects organized by professional Institutions.

Besides, very few entrepreneurs and businessmen study magazines and literature published by the professional institutes.

Bonus: 14 Social Responsibility of Entrepreneurs towards Customers.

9. Towards Government

The government is conscious about its responsibilities towards entrepreneurs. But, the entrepreneurs are General indifferent to their responsibilities towards the government.

Many of them are expert in evading payment of taxes, preparing false bills, maintaining duplicate accounts, corrupting the government functionaries and violating various laws.

All such malpractices cause substantial loss of revenue to the government.

The economic power has concentrated in few hands, due to intercompany investments, and hence the government has not succeeded much in achieving the constitutional objectives of economic and Social Justice.

However, the good number of entrepreneurs have helped the government in the achievement of planned targets, by increasing Industrial Production.

Know More: What are some interesting startups in India?

The entrepreneurs and industrialist have earned substantial foreign currency by various efforts made for export promotion.

They have also helped the government in the development of developing countries.

Besides, the revenue of the government has also gone up, due to the increase in the number of business organizations and the volume of transactions.

10. Towards World Society

The role of Indian entrepreneurs in the context of assuming social responsibility towards the world society has been quite general.

On the one hand, they have played important role in economic and industrial development of economically and industrially backward countries, but they have not been able to prove honesty in the international business world.

Thus, In India entrepreneurs are facing various Social Responsibilities.

Read More

Scroll to Top