Social obligations means the responsibility of business to act in a manner which will serve the best interest of the society.
The following are the various points which is need for assumption of social responsibilities:
(i) Long-term business interest: While a business must seek to maximise profits and wealth, it must not ignore social and human problems of the society. Business is an important part of the society.
(ii) Government Intervention: The Government has favourable attitude towards business which fulfill their social obligations. Laws to prevent unfair trade practices, black marketing, overcharging, adulteration etc. bear proof of this.
(iii) Us Use of society's resources: Business is a creation of the society and so it should respond to the requirements of the society. It is essential that every business enterprise should fulfill its social responsibilities.
(iv) Public image: If a business is conscious of its social responsibilities it will certainly enjoy a favourable image and will retain the needed credibility with the public.
(v) Moral justification: Every business uses capital, physical, human resources of the society for business purposes.
