What do you understand by social responsibility of business? How is it different from legal responsibility?

Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objective and values of our society. It refers to the obligation of business towards various social groups like employees, consumers, investors, government etc. In the words of H. R. Bowen, “Social responsibility of business is to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society Legal responsibility is the responsibility that a business has by virtue of law. Differences between Social and Legal Responsibility.

• Legal responsibility is compulsory under any of the laws, acts and constitution. Social responsibility is not backed by legal provisions. 
• Legal responsibility is compulsion while social responsibility is a choice. 
• Many a time, legal responsibility is fulfilled in the name of social responsibility. 
• There are no punishments for organizations not following their social responsibility but legal action can be taken against organizations not following their legal responsibility.

Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objective and values of our society. It refers to the obligation of business towards various social groups like employees, consumers, investors, government etc. In the words of H. R. Bowen, “Social responsibility of business is to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society Legal responsibility is the responsibility that a business has by virtue of law. Differences between Social and Legal Responsibility.

• Legal responsibility is compulsory under any of the laws, acts and constitution. Social responsibility is not backed by legal provisions. 
• Legal responsibility is compulsion while social responsibility is a choice. 
• Many a time, legal responsibility is fulfilled in the name of social responsibility. 
• There are no punishments for organizations not following their social responsibility but legal action can be taken against organizations not following their legal responsibility.

Social responsibility of business refers to its obligation to perform those actions which are desirable in terms of the objectives and values of our society and benefit the community. Business cannot exist with the sole purpose of maximizing profits and has to undertake various activities for public good so as to maintain goodwill among people. Social responsibility is broader than legal responsibility of business. Legal responsibility may be fulfilled by mere compliance with the law but social responsibility includes voluntary obligations towards society not covered by law, along with the obligations laid down by law.