Responsibilities of a Business towards Investors,Government and Consumers-HSC/Class 12,OC/OCM

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–

• 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–

• 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–

• 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.

Also refer - Responsibilities of Business towards Owners and Employees