Social Responsibility of Business is important for organization and its stakeholders due to following reasons:

1. Increased productivity and quality
2. Reducing operating cost
3. Increased sales and customer loyalty
4. Reduced in corruption
5. Improved financial performance
6. Improved transparency and reporting
7. Reduced regulatory oversight

Responsibility towards Shareholders

1. Shareholders are source of funds for the company. They expect maximization of the value of their investment in the company.
2. It is the duty of management to see that the financial position of the company is sound and the company always looks for growth.
3. The management should keep the shareholders well informed about the progress and financial position of the company.
4. The assets of the company are purchased with the funds provided by the shareholders. The management is responsible to safeguard these assets.

Responsibility towards Workers

1. Every business should pay reasonable wages and salaries to its employees so that they may satisfy their needs and lead a good life.
2. Good working conditions are necessary to maintain the health of the workers. Since workers spend about 8 hours at work place, they must be provided with good working conditions.
3. Workers should be provided with adequate benefits such as housing and medical facilities, insurance cover and retirement benefits.
4. The management should recognize the workers’ right to fair wages, to participate in decision affecting their working life, to form trade unions etc.
5. The workers should be helped by training and other means to improve their skills.

Responsibility towards Customers

1. The management should produce goods which meet the needs of the consumers of different classes, tastes and with different purchasing power.
2. The management should make goods of right quality available to right people at the right time and place at reasonable price.
3. The management should provide a prompt, adequate and courteous service to customers and handle their grievances carefully.
4. The management should ensure that advertisement and statement issued by the business are true and fair.
5. The management should not indulge into unfair and unethical practice such as black marketing, hoarding, adulteration etc.

Responsibility towards Suppliers

1. Giving regular orders for purchase of goods.
2. Dealing on fair terms and conditions.
3. Availing reasonable credit period.
4. Informing about the taste of consumers.
5. Timely payment of dues
6. Informing the suppliers for future development plans.

Responsibility towards Creditors

1. Provide accurate information regarding financial health of the organization.
2. Fairness in transactions
3. Promote a healthy atmosphere where creditors, suppliers and other interest groups are treated as
patterns in a co-operative endeavor.
Responsibility towards Government
1. To abide by the laws of the nation
2. To pay government taxes honestly
3. To avoid corrupting government employees
4. To encourage fair trade practices.

Responsibility towards Community

1. The management should not indulge in any practice which is not fair from social point of view. Society expects that the business uses the factors of production effectively and efficiently.
2. The management can develop the surrounding area for the well being of workers and general public. It should take preventive measures against water and air pollution and should contribute to community development activities.
3. It is the responsibility of management to help increase direct and indirect employment in the area where it is functioning.
4. The management should make best possible use of capital, raw material, machine, technical knowledge and other resources for the well-being of the society.