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138 BUSINESS  STUDIES maximises profits through increased changes in the attitude of business efficiency and reduced costs. people has been the realisation that (ii)  Burden on consumers: It is they have social obligations to fulfill argued that social responsibilities likebesides ensuring their own existence pollution control and environmental through profitable activity. Of course, protection are very costly and often part of this realisation is not genuine require huge financial investments. and takes the form of lip service, which is thought necessary to ensure the In such circumstances, businessmen are likely to simply shift this burden ofurvival of private enterprise. But at social responsibility by charging higherthe same time it cannot be denied that prices from the consumers instead of private business does partly realise bearing it themselves. Therefore, it and recognise the hard reality that a privately owned firm has to meet the is unfair to tax the consumers in the name of social responsibility. challengeofademocraticsociety,where (iii) Lack of social skills: All social all people have certain human rights problems cannot be solved the way and therefore, can demand responsible conduct from business. Unless the business problems are solved. In business sets its house in order, fact, businessmen do not have the changes its outlook and is prepared to necessary understanding and training to solve social problems. Therefore, play its legitimate role as an organ of according to this argument, social society, it has little chance of success. It will be useful here to go into some problems should be solved by other of the reasons and factors, which have specialised agencies. forced and persuaded businessmen to (iv) Lack of broad public support: Here the argument is that the public consider their responsibilities and the conditions which were favourable to in general does not like business the development of business concern involvement or interference in social with social responsibility. Some of the programmes. Therefore, business more important among them are: cannot operate successfully because of lack of public confidence and (i)  Threat of public regulation: Democratically elected governments cooperation in solving social problems. of today are expected to act as welfare states whereby they have to take care 6.3.3 RealityofSocialResponsibility of all sections of society. Thus, where Onthebasisoftheaboveargumentsfor business institutions operate in a and against social responsibility, one socially irresponsible manner, action is may wonder what the businessmen takentoregulatethemforsafeguarding people’s interest. This threat of public do in reality. Do they concentrate on profit maximisation? Or, do they regulation is one important reason support social goals? The fact is that due to which business enterprise feels one of the most important recent concerned with social responsibility. Reprint 2026-27