 𝘴 göt𝘺, 𝘰𝘶 𝘺 𝘱𝘶𝘭 𝘧𝘵 𝘱𝘢 𝘱𝘪𝘵 𝘢𝘳 𝘼𝘦 𝘲𝘯𝘰 𝘞𝘰𝘴𝘮𝘦 perception application, both wantido andấuakashut 𝘐𝘶𝘢𝘯 𝘵𝘩𝘳 𝘩𝘱𝘱𝘶𝘪𝘯, 첫 𝘧𝘶𝘭𝘪 𝘴𝘮𝘦 magnesium. Let us have a very brief idea about business and its objectives. Okay, and before that we should have a clear idea regarding business and business activities and business objectives. First of all we should remember that business basically consists of two things industry and commerce. And commerce includes buying and selling and other activities and industry where production takes place. So production and distribution this together called business or business is basically an economic activity. And business is an economic institution. The basic objective of business is earning of profit. That is why it is called economic activities. But business exist in society. So from that point of view business has also some social obligations or social objectives. We shall come to discussion later on. But first of all we should remember that business is an economic activity carried on by people with the aim of earning money or income. That is the clear concept of business. Sir, is it possible for a business to survive only with the objective of earning profit? You see business is basically business have two objectives. One is economic and other is non-economic. Economic activity includes mostly profit earning of profits or increase in market share or production. This comes under economic activity. And other non-economic objectives of business includes social objectives or human objectives or some national objectives. These objectives come under non-economic objectives. So though basic objective of business is to earn money or income. And for survival and growth of business the earning of money or income is most essential. But only with that objective a business cannot survive in the long run. As I told you that business is a social institution. It exists in society. It does not exist in vequam. So it is a part and parcel of the society. So being a part of the society has some social objectives or social responsibilities. Social obligations. So simply earning money it may be a short term objectives. But the long term objective of business is to survive and grow. And survival and growth of business for a long period is not possible only through earning of money. It must discern certain responsibilities to various interest group of the society. So without discharging social responsibility a business cannot survive in the long run. So then sir what basically the concept of social responsibility sir? What is the meaning of social responsibility? Yes it is a must talk about topic social responsibility. Adolf Warley one famous management author he defined that business has social responsibility and social responsibility is nothing but the manager's responsiveness to social consensus. The society has some expectations from business. Being a part of the society. Society expects something from business and how you are responding to the expectation of the society. So in addition to earning money business has to keep in mind keep in target the objectives or responses or expectations of the society. So serving the interest of the society or obligation to do something for the betterment of society in addition to earning money is social responsibility we can say. So in that sense social meaning of the social responsibility and sir how the business houses how the corporate houses can discern or discern the social responsibility. So you see social responsibility when we talk about social responsibility of business or it is also known as social responsibility of management and management of the corporate houses or companies are entrusted to some board of directors and managers and they are basically responsible for discharging social responsibilities. So corporate houses discharge responsibilities to the society in various ways they have different interest groups in addition to say their employees they have customers they have shareholders they have the society in general they have government they have responsibility to for protection of environment of the country and they have to give due honor to various legislative provisions enacted by the government these things come under social responsibility. So corporate houses basically when we talk about social responsibility of business the question arises how far does our companies our corporate houses are discharging these responsibilities. Generally we are less concerned about proprietary business or partnership business or cooperative business when we talk about social responsibility automatically the picture of a company comes into mind and the companies or corporate houses are discharging responsibilities in various ways. I am telling you that for responsibilities discharge they can go for some voluntarily discharge or statutory discharge we shall come I think to that part of discussion later on but basically we mean that that social responsibility of business specially with the growth of business in our country as well as globalization of business this question of social responsibility has become very significant because business are running business are changing profit but at the same time business can never ignore interest of the society. So social that is why many corporate houses are undertaking many social projects for welfare for benefit for upliftment of social interest. Can you give some example concrete examples of such social responsibility? You see in India for example a school group of companies they have started heart institution for operation of heart disease for cure of heart disease in India. You see Bila group of industry which they have started technological institution Tata group of industry they have started many projects for promotion of culture, literature for promotion of sports activities in India like that they have even like our Glaxo company they have undertaken certain projects for plantation of medicinal plants so that they can be utilized for production of medicines. So these are some of the examples many business houses both national and in multinational companies have undertaken certain projects for their benefits as well as for the benefits of the society. So sir discharging of social responsibility it has very much importance to the business for the survival of the business as well as for the upliftment of the society. So without discharging social responsibility a business cannot survive. Now sir if we come to the context of Indian scenario what is the scenario that we seen in India or particularly the Indian companies, domestic companies. Now already I have mentioned about our Tata and Bila Tata Bila and even Lila and groups and Dalmia group even Dabur these companies have undertaken certain projects and they are not ignoring these aspects. Is it up to the work sir? That is questionable whether it is up to the mark or not to what extent yes let me clarify it is up to the expectation of the society. Society has many expectations from business and all expectations cannot be fulfilled by discharging social responsibility because basically business cannot do discharging social responsibility is by ignoring their profit aspect. First of all they will try to survive they will try to grow and they will try to expand they will try to diversify business activities and then only after meeting their own needs they will go to meet the needs of the society and but again I am telling you that it is a part and parcel of the society that eating is not the sole aim of living similarly earning profit is not the only aim of business So definitely it is not up to expectations many technical institution hospitals and other sports stadium construction of stadiums these things have been undertaken by many business houses big business houses in India we have seen but they have concentrated I think mostly in the big towns and cities till in India the urban rural areas particularly are not getting the benefits of the social responsibility discharged by our business houses if what we see sir for example the refinery so while a refinery is a work or when a refinery is established the society incur a very huge cost because the entire area is polluted all the living beings are suffers from the emissions or the hazards discharged by the refineries likewise we can see the good car companies which are growing in some particularly they create a very big problem to the living beings so sir I think sir I also feel that the extent to which the business should have discharged their responsibility I mean the cost the damage that they have made they have not discharged up to the mark Actually you see previously I mentioned about voluntary discharge of responsibility and also statutory discharge of responsibility in India we have some legislative provisions and all legislative provisions for protection of environment or say for providing service proper service to the employees or providing quality goods and service to the customers there are certain provisions of law they are our business houses sometimes what they do they just say that we are discharged because we have followed the rules and regulations but that is not enough simply abide by the provisions of law it does not mean discharge of responsibility say pollution problem you have mentioned about pollution problem is not only created by refineries sugar industry, paper industry these industries also you have mentioned about the narcotics like drugs or say good cars and all these particularly in northeast region and they have definitely polluted the society society in general and they are I think in one sense they are just taking only one objective that is earning profit and they are totally ignoring the social interest general interest interest of the coming generation also definitely in that case two things are important one is the legislative provisions should be made very strict to restrict this type of business and secondly the business houses the management of the business houses should also understand the depth of the problem and accordingly they should voluntarily take some measures why only law you have a moral obligations so that moral obligations the values of business ethics of business that is that should not be violated so while discharging responsibilities by our business houses they should not forget about the social values social ethics, social norms moral values these things are also equally important sir you talk about legal provisions sir in India is there a strict or is there any specific law which binds the company for discharging social responsibility yeah yeah definitely there are laws say for example for the protection of interest and the rest of shareholders shareholders also come under social responsibility because social responsibility means yet one thing I did not clarify social responsibility means responsibility distance to the society but society means what? society means shareholders society means employees society means customers village community protection of environment rules and regulations of government to be followed only form the society so while discharging responsibilities to the shareholders our companies in India are bound to follow the provisions of companies payment of bonus and payment of wages act payment of minimum wages act or factories act these acts have also made some provisions and these are the statutory measures our companies follow the provisions say for a health and safety of workers in factories in industries we have provisions under factories act and our companies say that we have abide by these things similarly for protection of consumers we have essential commodities act 1955 consumer protection act 1986 MRTB act was originally there in 1969 so the provision of these act also make or compel our business institutions to strictly follow certain rules and regulations and these come under social responsibility the government also have some say government responsibility what are the responsibilities of business to government it include say income tax act or foreign exchange management act SEBI act 1992 provisions of these acts have compel our businesses provision of these act have made them bound or to discharge certain responsibilities to various interested groups so we have law we cannot say that in India we have no statutory provisions for discharge of responsibilities we have many laws but as regards the implementation of concern that will be another topic of discussion so how far the provisions of various laws are followed by our business houses at the time of discharging responsibilities say in Guwahati refinery safety measures health measures they have followed the provision of factories but at the same time oil India limited or IOC Indian oil corporation made some provisions for welfare of the employees voluntarily buses for the children caring of children of employees or for the employees free canteen facilities these things are voluntary they have voluntarily done it depends upon attitude of the management financial condition of the institution or say well organized trade unions its pressure on management many aspects are there sir now can we sir demarcate the position of the government companies PS public sector undertaking and private undertaking sir can we analyze is there any difference whether the public sector company is discharging their social responsibility properly or they are lacking behind the private sector has an as a basic objective that they want to create an image or reputation in the society for marketing their products for entering in the hearts of the consumers and keeping this target in mind they want to enter into society through various other schemes welfare schemes so that a brand name a reputation a proper good will is created in the market and that is why we have observed that our public sector undertakings are mostly suffering from fund shortage fund crunch and that's why they have not been able to undertake any big projects for social social benefits say tell me how many projects have been undertaken for construction of stadiums construction of hospitals construction of big dams or electric power projects by our public sector undertakings no they have not and one important point is that public sector undertakings are subject to budget provision of the government they have fund problem financial problem so they are just sometimes in the form of fundraising they are supporting some sports activities or musical activities or cultural activities literary activities that is very small very mega very small negligible amount compared to public sector undertakings private definitely because they have why business huge amount is invested billions of crores of rupees invested and definitely they are another objective is that why private sector is have shown more interest in the surging responsibilities number one cause is that they want to market their products in the society so definitely they will try to satisfy the society create a good image and reputation in the society and that is one objective they are not very much concerned that society will gain and society will be benefited and a lot of living of the society will be high so we have undertaken these projects that is their secondary objective they reach to the society how to reach to the society how to be closer to the customers society if we talk about the scenario of Assam Assam sir we have very small number of companies or industries or corporate houses Assam sir can you sir give a little bit idea about the industries or companies in Assam how they are discharging their social responsibility okay good good you have rightly pointed out that the number of say industries or regional offices or branch offices of our big business houses in Assam or in North East is quite negligible we don't have seen big projects or many manufacturing plant established by our big business houses in North East or in Assam so that's why the employment generation is also less only big business houses corporate houses have shown interest in selling their products marketing their products in the North East or in Assam but yet we have tea industry Tata, Magor they have good projects many tea states they have owned Oil India limited in public sector or IOC Indian Oil Corporation ONGC we have few such industries in North East or in particularly in Assam and they are trying to fulfill certain needs of the society I am telling you for example Magor educational trust with Magor group of industry Magor educational trust every year declare an award for promotion of Assamish Literature that is Assam Veli Award that is for promotion of the literature of the society that is a social obligation they have undertaken it voluntarily North East territory provision say Tata group of industry particularly in Assam they have sometimes undertaken certain projects like for example construction of schools or colleges for example Dumbuma College Dumbuma College was originally constructed by tea companies entire houses construction were done so this is a good example and many culverts bridges or schools small hospitals they have established unfortunately the big business houses they have no industries they have no manufacturing plan production centers in North East and they have not undertaken any these projects like say why there is not a good or big stadium to be constructed by big business house in Assam is there any management and technological institution in Assam started by constructed by big business houses we have not even in a hospital like a school group of hospital or Tata group of hospital no we don't have so they have to some extent neglected they have not this part of the society is not properly covered up by their schemes of social responsibility though you know that our corporate houses annually in their total budget expenditure keep a separate item separate heads of expenditure social welfare fund and that social welfare fund I think in that fund they have not provided any fund specially for Assam they are just giving some donations or contributions for celebration of certain festivals that's enough that point should be actually taken in mind and they should be approach properly through our some social organizations or non-government organizations or even by government organizations they can make a request to do big business houses that you can have a good hospital in Assam you can have a good stadium in Assam also technological and management institution in the private sector why not why not they will not come because the generation of income generation of profits is supposed to be low from as compared to Bangalore or Mumbai so sir thank you sir today we very nicely discuss about the social responsibility of business including the national scenario and also the scenario of Assam so thank you sir