A business organisation is a coalition of several interest groups or stakeholders like shareholders, customers, employees, suppliers, etc.

1. A Business Enterprise which accepts and discharges social obligations enjoys greater freedom.
2. For Example, the government has passed the consumer protection Act to prevent businessmen from indulging in adulteration, black marketing and other anti-social practices.

1. Every businessman earns prosperity from business and should give back the benefit of this prosperity to society.
2. This is voluntary.
3. This benefit is the moral responsibility of business.
4. As this benefit is supposed to be passed on to society, it can be said to be Social responsibility of Business.

The benefits derived by employees of a Socially Responsible business enterprise are:
1. Timely and regular payment of wages and salaries.
2. Proper working conditions and welfare amenities.
3. Opportunity for better career prospects.
4. Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc.
5. Better living conditions like housing, transport, canteen, creches, etc.
6. Timely training and development

The following are some important definitions of social responsibility:
"Social Responsibility refers to the obligation to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of objectives and values of our society." - Howard R.
"Social Responsibility requires managers to consider whether their action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony". Peter F. Drucker.

Responsibility towards different Interest Groups:
After identifying the concept and importance of social responsibility of business the various responsibilities that a business has towards different groups with whom it interacts are discussed below. The business generally interacts with owners, investors, employees, suppliers, customers, competitors, government and society. They are called as interest groups because by each and every activity of business, the interest of these groups is affected directly or indirectly.
1. Business
2. Investors
3. Employees
4. Government
5. Competitors
6. Customers
7. Society
8. Suppliers
Responsibility of Business Towards Different Interest Groups:
(i) Responsibility towards owners :
Owners are the persons who own the business. They contribute capital and bear the business risks. The primary responsibilities of business towards its owners are to
(1) Run the Business efficiently
(2) Proper utilisation of Capital and other sources.
(3) Growth and appreciation of Capital.
(4) Regular and fair return on Capital invested.
(ii) Responsibility towards Investors :
Investors are those who provide finance by way of investment in debentures, bonds, deposits etc., Banks, financial institutions, and investing public are all included in this category. The responsibilities of business towards its investors are:
(1) Ensuring safety of their Investment.
(2) Regular payment of Interest.
(3) Timely repayment of principal amount
(iii) Responsibilities towards Employees :
Business needs employees or workers to work for it. These employees put their best effort for the benefit of the business. So .it is the prime responsibility of every business to take care of the interest of their employees. If the employees are satisfied and efficient, then the only business can be successful. The responsibilities of business towards its employees include:
(1) Timely and regular payment of wages and salaries.
(2) Proper working conditions and welfare amenities.
(3) Opportunity for better career prospects 
(4) Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc.
(5) Better living conditions like Housing, Transport, Canteen, Creches, etc.
(6) Timely Training and development
(iv) Responsibility towards suppliers:
Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders. Certain suppliers, called distributors, supply finished products to the consumers. The responsibilities of business towards these suppliers are:
(1) Giving regular order for purchase of goods.
(2) Dealing on fair terms and conditions
(3) Availing reasonable credit period.
(4) Timely payment of dues
(v) Responsibility towards customers:
No business can survive,without the support of customers. As a part of the responsibility of business towards them the business should provide the following facilities:
(1) Products and services must be able to take care of the needs of the customers.
(2) Products and services must be qualitative.
(3) There must be regularity in supply of goods and services.

Definition of Social Responsibility:
The following are some important definitions of social responsibility:
"Social Responsibility refers to the obligation to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of objectives and values of our society."- Howard R.
"Social Responsibility requires managers to consider whether their action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony". Peter E. Drucker
Need for Social Responsibility:
Business is expected to be responsible to society due to the following reasons:
a) Self-Interest:
1. A business unit can sustain in the market for a longer period only by assuming some social obligations.
2. Normally businessmen recognise that they can succeed better by fulfilling the demands and aspirations of society.
3. People who have had a higher standard of living and have been exposed to an environment conducive to healthy growth make better employees and customers for business than those who are poor, ignorant and oppressed.
b) Creation of Society:
1. Business is a creation of society and uses the resources of society.
2. Therefore, it should fulfil its obligations to society.
3. Businessmen should respond to the demands of society and should utilise the social resources for the benefit of the people at large.
4. In the long run a successful business can be built on the foundations of a happy community and a satisfied work force.
c) Social Power:
1. Businessmen have considerable social power. Their decisions and actions affect the lives and fortunes of the society
2. They collectively determine for the nation such important matters as level of employment, rate of economic progress and distribution of income among various groups.
3. Businessmen should assume social obligations commensurate with their social power.
4. The government controls and regulations intervene in the social power of business in the absence of business taking up social responsibility.
5. It is, therefore, the moral and right thing for business enterprises to assume social obligations.
d) Image in the Society:
1. A business can improve its image in public by assuming social obligations.
2. Good relations with workers, consumers and suppliers help in the success of business.
3. Social obligations improve the confidence and faith of people in a business enterprise.
e) Public Awareness:
Now-a-days consumers and workers are well informed about their rights.
1. Consumers expect better quality products at reasonable prices
2. Similarly, workers desire fair wages and other benefits.
3. They exercise pressure on the employer's through-trade unions.
4. There will be industrial unrest and conflict in society,if business does not fulfil its obligations.
f) Free Enterprise :
1. A business enterprise which accepts and discharges social obligations enjoys greater freedom.
2. For example, the government has passed the Consumer Protection Act to prevent businessmen from indulging in adulteration, black marketing and other anti-social practices.
3. Thus, social responsibilities are essential for avoiding governmental action against business.
4. Such action will reduce the freedom of decision making in business.
g) Law and Order:
1. Any business unit can survive and grow only.when there is law and order in society.
2. If business exploits the weaker sections of society for too long, these sections will take the law in their own hands.
3. The resulting chaos will threaten the very survival of business.
h) Moral Justification:
1. In a large country like India, government alone cannot solve all the problems.
2. Business has money and talent with which it can assist the government in solving problems.
3. For example, business can play a vital role in solving regional disparities, unemployment, illiteracy, scarcity.of foreign exchanges and such other problems in the country.
4. Moreover, business has created some social problems such as pollution, health hazards, etc.
5. Therefore, business should help society in solving its problems.
i) Socio-Cultural Norms:
1. India has a rich cultural heritage.
2. Businessmen who help in preserving and promoting this heritage will naturally enjoy the patronage of the society and the government.
3. Business should, therefore, promote equality of opportunity, healthy relations with employees and customers, etc.
i) Professionalism:
1. Management of business enterprises is being professionalised.
2. An owner-manager nurses a greater greed for profiteering because all the gains go to him.
3. But a salaried and qualified manager is less likely to be lured because he does not benefit from the profits earned through questionable practices.
k) Trusteeship:
1. Mahatma Gandhi suggested that "those who own money or property should hold and use it in trust for society."
2. Businessmen should run business firms not for their self - enrichment but for the good of the society.