1. Protection of Stakeholders Interest : A business organisation is a coalition of several interest groups or stakeholders.
Example – shareholders, customers, employees, suppliers, etc.
2. Promotion of Society : Business is a sub – system of society. It draws support and sustenance from society in the form of inputs. Socially responsible behaviour is essential to sustain this relationship between business and society.
3. Assessment of Social Impact : During the course of its functioning, a business enterprise makes several decisions and actions. Its activities exercise a strong influence on the interests and values of society.
4. Organised Social Power : Large corporations have acquired tremendous social power through their multifarious operations. Social power may be misused in the absence of social, responsibility.
5. Legitimacy : It is in the enlightened self-interest of business to assume social responsibility.
6. Competence : Business organisations and their managers have proved their competence and leadership in solving economic problems.
7. Professional Conduct : Professional managers are required to display a keen social sensitivity and serve the society as a whole.
8. Public Opinion : Adoption of social responsibility as an objective will help to improve the public opinion of business.
