Departments in a Business Organization, Social Responsibilities of a Business


Welcome to class! 

In today’s class, we will be talking about the departments in a business organization, the social responsibilities of a business. Enjoy the class!

Social Responsibilities of a Business

Social Responsibilities of a Business


  1. Departments in a business organization.
  2. Functions of the departments.
  3. Social responsibilities of a business.

Departments in a business organisation

Business organizations are usually divided into different departments based on their functions. The typical departments to be found in a business organization include:

  1. Personnel Department.
  2. Accounts / Finance Department
  3. Training & Manpower Development Department
  4. Production Department
  5. Sales Department
  6. Marketing Department
  7. Administration Department
  8. Maintenance Department
  9. Mails Department etc.
Functions of the personnel department
  1. Recruitment of staff to fill vacant positions.
  2. Handling of staff welfare matters including arrangements for medical care, safety etc.
  3. Discipline of staff – including suspension, demotion and dismissal.
  4. Appraisal, promotion and fixing of the remuneration of employees.
  5. Effecting inter and intradepartmental transfer of relevant staff.
  6. Maintenance of good industrial and labour relations thereby ensuring industrial peace.
  7. Liaising with trade unions within and outside the organization.
  8. Organizing courses for staff e.g. induction course, seminars, workshops and symposia.
  9. Human Resources Planning – i.e. planning and projecting the manpower needs of the organization and designing ways of meeting them.
  10. Keeping of personnel (Staff) records.
Functions of the finance/accounts department
  1. Control of expenditure or costs.
  2. Keeping of proper books of account i.e. recording of the financial transactions of the business.
  3. Collection of money being paid to the organization.
  4. Payment of money on behalf of the organization.
  5. Preparations /payment of staff salaries.
  6. Advising management on financial matters


  1. State four functions of the Personnel Department.
  2. What is the difference in the functions of the Sales Department and the Marketing Department?

Social responsibilities of a business

Social responsibility of business is the ethical and moral responsibility of a business to society.  It refers to social obligations which could sometimes extend beyond legal and economic obligations.  Businesses, therefore, have a moral responsibility to protect and improve the welfare of society.

Businesses have the following social responsibilities
  1. Responsibility to the Government also known as a legal responsibility: It includes such obligations as complying with the law, payment of taxes, duties and levies.
  2. Responsibility to Customers: This defines the obligation to offer quality product and services that will satisfy the wants of the customers.
  3. Responsibility to the Community: This is a voluntary obligation but helps in acquiring a good image for the organization.  It includes the provision of social amenities such as water, roads, schools, hospitals, town halls, scholarships, sponsorship of projects etc.
  4. Responsibility to Employees: This includes the provision of working tools, conducive working environment, staff welfare package, training and staff development programmes.
  5. Responsibility to Shareholders: This includes making an adequate profit and declaring commensurate dividends.
General evaluation
  1. Who are the stakeholders in a business organization?
  2. Explain what is meant by the social responsibility of business.

Reading assignment

Essential Commerce for senior secondary schools by O. A. Longe. Pages 231-240.


  1. State five functions of the finance department in a business establishment.
  2. List five ways in which a business discharges its social responsibilities to society.


In our next class, we will be talking about the Structure of a Business.  We hope you enjoyed the class.

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