As already mentioned in the previous post, every business has certain responsibilities towards all the stakeholders. Given below are the responsibilities of a business towards the Investors, Government and Consumers
Responsibility towards Investors:
Return on Investments–
Transparency–
Grievances Management–
Responsibility towards Investors:
Return on Investments–
- Investors take the risk and invest money in the business to earn good returns (interest)
- Hence it is important that they get fair returns/Income on their Investments
Transparency–
- It is important that the business is transparent in dealing with investors.
- The business should pass on all the necessary information to the investors
- This helps the business to win the trust of the investors
Grievances Management–
- Every company must have proper grievances handling mechanisms in place for the investors
- The concerns of investors (if any) should be heard and efforts must be made to solve them quickly
Proper Disclosure of information–
- The business needs to send regular reports and statement of profits to the investors
- The company needs to give a true picture of its financial performance.
Proper Conduct of the meetings–
- Regular meeting with investors should be held to update them about the performance of the company
- Notices of such meetings should be sent to all the investors in time
Maintain Goodwill and Solvency–
- It is important that the business maintains a good image of the company.
- The investments of the investors should be used very carefully and it must be ensured that the business maintains its solvency
Responsibility towards Government:
Payment of Taxes–
Payment of Taxes–
- The business should make payment of all the taxes in a timely manner
- The business should not indulge in evasion of tax as tax helps the government to provide better facilities in the country
Follow Laws–
- The business should follow all the rules and regulations laid down by the government
- The business should be conducted in a lawful manner
Political Stability–
- The business must assist the government in maintaining political stability
- The economic growth of the country requires political stability
- The business should not support anyone who is creating a political disturbance
Earning Foreign Exchange–
- The business should try to earn foreign exchange by exporting their goods to foreign countries.
- All the rules and regulations with respect to export, import, and foreign exchange must be strictly followed.
Support Socioeconomic Programs-
- The business should support the government in the implementation of programs designed to increase literacy, the creation of jobs etc.
- The support can be financial or non-financial. Nonfinancial support includes supporting the government by giving expert guidance, latest technical know-how etc.
Miscellaneous–
- Help government in case of natural calamities
- Help the government by providing expert advice for framing rules and regulations.
- Should not try to gain an unfair advantage by bribing any government officials
Responsibility towards Consumers:
Quality Products–
Quality Products–
- Business Enterprise should always provide good quality products and services.
- The goods should match the quality standards laid down by the government
Consumer Safety–
- The products of the company must be safe to use
- Unsafe goods should not be sold in the market
Reasonable Price–
- Every company should sell its goods at a fair price
- Maximum Retail Price (MRP) should be mentioned on all the products
Complete Information–
- Every company should ensure that accurate information is provided on the packaging of all the products.
- Such information includes instructions for usage, its ingredients, date of manufacturing etc.
Advertising Ethics–
- A company should not make any false claims/promises in the advertisements
- Advertisements should not be misleading or vulgar
Hear Complaints–
- Every company should pay proper attention to complaints/grievances of the consumers
- The company should make sure that all the complaints are resolved satisfactorily
Miscellaneous–
- Every company should provide good after-sales services.
- No company should indulge in acts like creating artificial scarcity of the goods in the market to exploit the consumers.
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