Social responsibility of a business towards its internal stake-holding groups can be classified in three parts.

They are:
A. Social responsibility of business towards owners:
Here, owners refer to the share-holders which are considered to be the true owners of a company. When business units grew in size, they started obtaining capital from share-holders which were considered true owners separate from management. So, from the view point of a company, it has certain social responsibilities towards its owners. They are:
1. Allow participation in decision making:
Share-holders are the owners of the company. So, it is important to maintain their confidence and trust in the company. It is social responsibility of the company to allow the owners to participate in decision making process.

2. Provide capital security and growth:
Company’s managers need to put their personal interest aside and use their skills and experience for providing security to the capital that the share-holders have invested and give them good returns through company’s growth.

3. Protecting interests of the owners:
The company should focus on providing safety and growth to the capital invested by owners i.e. share-holders. It should fulfill its responsibility of providing long-term growth to the company and maintain owners’ interest in the company.

4. Priority in development of company:
When company plans to expand/develop itself and is in need of capital then it should first give the priority to the existing owners and offer them rights share.

B. Social responsibility of a business towards investors.
When a company needs additional capital it raises it from investors. These investors could be banks, preference or debenture share-holders, etc. social responsibilities towards these investors are as follows:
1. Timely payment of good returns:
Investors invest with an expectation of high returns at regular interval or a present time. Thus it is the social responsibility of the business unit to pay good returns to investors regularly.

2. Provide necessary information:
It is the responsibility of the business unit to inform its current position and future plans to the investors.’

3. Provide growth to the invested value:
Better the financial results of the unit better will be the market value of the funds invested in the company. So, a unit should take such decisions which gives growth to the investment of investors.

4. Security of money:
Investors invest their money in the business unit believing that the company will work efficiently and deliver good returns. It is the social responsibility of the business to make proper use of investor’s money so that it remains safe and grows. This will also help company to borrow more money from investors in future.

5. Welcome suggestions:
Generally, the investors who invest their money are aware of the market trends. So, the business units should welcome the suggestions of investors and try and use them for betterment of the company.

C. Social responsibility of business towards employees.
Employees form the base of any business unit. Without their whole hearted contribution a business unit cannot work with its full efficiency. Thus, it is the social responsibility of a business unit to take proper care of its employees. This includes:
1. Maintaining standard of living :

Remuneration i.e. salary/wages an employee earns reflects his standard of living. -» Based on company’s financial status it must provide a reasonable remuneration to the employees which can maintain their standard of living. For this the business over and above remuneration, need to provide incentives, bonus, etc. at pre¬decided intervals.

2. Provide proper work atmosphere and facilities:

• The business unit must provide positive work atmosphere that encourages growth of peer relationship and strong bonding towards company.
• Based on unit’s size it can provide canteen, transportation, clean and well ventilated environment, etc. to the employees.
• If possible a business unit should provide air-conditioning and separate arrangements for female employees.

3. Provide social security:

In addition to timely and reasonable salary, employees should be provided facilities like provident fund, pension, sick and casual leaves, medical and life insurance, etc.

4. Give recognition to employees (labour) union:

Employees form employee (labour) union to present their problems and demands in an organized way to the management. The management must provide recognition to such union. It should listen to union’s reasonable demands and fulfill them for maintaining motivation and moral of the employees.

5. Maintaining a compromising attitude by top management:

• Top management should have a flexible and compromising attitude for the betterment of the business unit.
• It should keep in mind that employees are an asset and they will work efficiently and remain motivated only if their reasonable demands are fulfilled and their genuine complains are solved.
• By maintaining a compromising attitude the business can let go its few incorrect or egoistic decisions or policies and compromise them for employees and business growth.
• A warm and cordial relation should be maintained with employees so that family like healthy atmosphere can be maintained in the company.

6. Motivation:

• A business unit must create several opportunities through which it can constantly motivate its employees.
• A unit can arrange competitions for best performance, arrange tours or dinners with employees, award them for their specific contribution in enhancing business, etc. The business unit also encourages its employees through increments, promotions, rewards, cash vouchers, travel vouchers, etc.

7. Other responsibilities:

• Business unit should involve employees in decision making, inform them about company’s important decisions and plans, terms and conditions of work before appointing them, etc.
• The unit should also care for education and health of employee’s family, etc.