As well as being affected by society, business also has a responsibility to the society in which it operates. Members of society are stakeholders (have an interest in how the business operates) and need to be treated accordingly. Let's look at the range of major stakeholders and think of how a business has a social responsibility towards them.
- Employees - they look for job security and adequate rates of pay.
- Customers - want to buy with trust and a belief that adequate quality will be a norm. They also assume safety has been a primary objective of the business and that the price they pay is a fair reflection of costs plus a reasonable amount of profit.
- Suppliers - expect some security of orders at a fair price and regular payment of bills.
- Owners - look for dividends, increasing profits and a positive image of the business with the wider public e.g. environmental responsibility.
- Government - hope that business uses resources efficiently and effectively and makes decisions with the best and widest interests of society in mind.
- Local community - again look for jobs within a secure environment and a lack of social costs.