Social responsibility of business implies that a corporate enterprise has to serve interests other than that of shareholders who, of course, expect that their rate of return, value or wealth should be maximized.
The world is critically in need of organizations that will see beyond profit and begin to protect the interest of the chicken that continues to lay those golden eggs.
Any how you look at it, the interest of other stakeholders: community and environment must be protected and promoted.
The foremost responsibility of business enterprises is to ensure that they should not damage the environment and for this purpose they should reduce as much as possible air and water pollution by their productive activities. They should not dump their toxic waste products in rivers and streams to avoid their pollution. Pollution of environment poses a great health hazard for the people and is a cause of several respiratory and skin diseases.
In economic theory pollution of environment is regarded as social cost that must be minimized by all means. There is now a growing awareness towards reduction in environment pollution. According to the recent findings the climate change is occurring due to greater emission of carbon dioxide and other pollutants.
Therefore, the corporate enterprises should adopt high standards of environmental protection and ensure that they are implemented regardless of enforcement of any environment laws passed by the government. Many countries including India have passed laws to protect the environment but they are not properly and strictly enforced.
Business enterprises in their attempt to maximise profits recklessly and negligently pollute the environment. Therefore, it is required that government should take tough measures and enforce environment laws strictly if environment is to be protected.
