The following are the important arguments in support of business involvement in the solution of social ills:

(A) Long-term Business Interests: While a business must seek to maximize profits & wealth, it must not ignore social & human problems of society. Business is an important part of society. It is established with the consent of society, & should help solve the problems facing society. If it neglects its responsibilities & indulges in production of undesirable goods, charges high prices for goods, or violates any of the laws regulating business activities, it may not be able to exist for long.
(B) Public Image: If a business is conscious of its social obligations, it will enjoy a favorable image. People will patronize it by purchasing goods & services produced by it, thus leading to its profitability.
(C) Avoidance of governmental action: The government has favorable attitude towards business concerns that fulfill their social obligations. On the other hand, it punishes those who work against public good. Laws to prevent unfair trade practices, adulteration, overcharging, discrimination in employment opportunities, etc. are proof of this.
(D) Socio-cultural norms: The government & society both help to promote a business that works according to social & cultural norms, such as, co-operation, healthy employer-employee relations, protection of consumers’ interests, etc.
(E) Owners’ Interests: A business with social awareness is a safe & reliable investment avenue. This will boost the image of business leading to increasing return to investors.
(F) Moral justification: Business concerns should actively work to solve social problems in co-operation with government. The government, on its part, will offer relief to business houses for setting up industrial units in backward areas, or for establishment of hospitals or educational institutions.
(G) Social awareness: There is increasing social awareness as regards to role of business. There are organizations to safeguard consumer interests. There are many Consumer Protection acts to promote consumer interests & curb unfair business practices.
(H) Trade unions: Legal support to establishment of trade unions has enabled workers to bargain with employers for a fair deal. There are laws to protect worker’s interests as regards payment of minimum wages, compensation in case of accidents & termination of employment.
(I) Ensuring Law & order: Law alone cannot ensure an orderly environment in society. Therefore, it is necessary that business firms discharge their social responsibilities to contribute to social peace & development.

Responsibilities Towards different interest groups
A business concern is in constant interaction with different components of interest groups of society. While activities of a business concern influence the activities of these interest-groups, the activities of interest-groups will also influence the activities of business.

Following are the main interest groups of a business:
1. Shareholders
2. Employees
3. Consumers
4. Suppliers, Creditors, Competitors, etc.
5. Government
6. Community

Responsibilities towards these interest groups:
(A) Shareholders: A business holds a special duty towards shareholders who have invested money to bring it into existence & keep it going. Accordingly –
(1) It should provide them adequate return on capital invested by them.
(2) It should furnish accurate & complete information as regards working of the business.
(3) It should not falsify accounts to suppress profits with the object of denying dividend to shareholders & escape tax obligations, or to inflate profits to present a rosy picture about the functioning of the business.
(4) It should allow shareholders representation & participation in management of business.
(5) It should work to maximize shareholders’ wealth by means of increase in value of shares
.

(B) Employees: A business owes the following responsibilities towards its employees:
(1) It should pay a fair wage in keeping with the growing cost of living.
(2) It should allocate work according to their sustainability.
(3) It should provide adequate financial & non-financial rewards & due recognition to deserving employees.
(4) It should promote harmony & co-operation among workers & accord recognition to the unions formed by them.
(5) It should ensure safety for workers engaged in hazardous work i.e. it should provide good working conditions.
(6) It should provide funds to promote employee-welfare, such as, housing, medical care, retirement benefits, recreation, etc.
(7) It should treat its employees as partners in business & assure them security of service & opportunities for advancement.


(C) Consumers: A business owes its existence to consumers. The responsibilities of a business towards consumers may be summed up as follows:
(1) A business should provide goods & services that are needed & desired by the customers.
(2) It should ensure that the goods & services are of standard quality & reasonably priced.
(3) It should avoid malpractices such as adulteration, profiteering, black marketing, misleading advertising, & so on.
(4) It should set up machinery to handle consumer grievances on account of defective products, faulty repair work, poor complaint, handling, failure to deliver goods on time, & non-compliance with guarantee/warranty.
(5) It should comply with laws aimed at protection of consumers or handling of hazardous or unsafe products.
(6) It should set up machinery to provide prompt & effective after-sale service.

(D) Suppliers, Creditors, Competitors, etc.: A business obtains its input, such as, raw materials, labour, equipment, etc. from society. It must be regular in payments to suppliers of inputs & must not misuse its position to make unfair cut in prices or wages. As for competitors, the business must not resort to unfair trade practices like price-cutting, or underselling to gain unfair advantage.


(E) Government: Towards government, a business owes the following responsibilities:
(1) It should comply with the laws passed by the government. Such compliance should not be under compulsion or sue to fear of punishment, but for greater good of society.
(2) It should make constructive suggestions as regard formulation of policies that have a bearing on business. It must co-operate with the executive wing of government in proper implementation o laws & policies.
(3) It should meet its tax obligations honestly & on time.
(4) It should voluntarily support (in some cases even take lead) in government efforts aimed at improving the quality of life of people.
(5) In times of any national calamity or disaster, such as drought, floods, earthquake, etc. It should contribute towards rescue & relief works if possible.
(6) It should plan the setting up of new ventures in rural & backward areas in the interest of balanced development.


(F) Community: The responsibilities of a business towards the community at large maybe summed up as follows:
(1) It should act as a good & useful citizen of society.
(2) It should ensure that its production processes or discharge of industrial effluents does not case environmental pollution. Where such pollution is unavoidable, it must take steps to reduce it, important among these steps is to assist organizations engaged in conservation of natural resources & pollution control.
(3) It should not discriminate on the basis of race, religion, caste, sex, etc., in providing employment to people.
(4) It should take adequate safety measures as regards production of hazardous or unsafe products.
(5) It should not resort to false advertising to mislead people as regard its activities.
(6) It should contribute to social welfare. This includes establishing educational institutions, hospitals, night shelters, orphanages, etc.
(7) It should promote cultural activities such as music, dance, drama, etc.
(8) It should aid & assist organizations engaged in promoting sports & games.