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
- Departments in a business organization.
- Functions of the departments.
- 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:
- Personnel Department.
- Accounts / Finance Department
- Training & Manpower Development Department
- Production Department
- Sales Department
- Marketing Department
- Administration Department
- Maintenance Department
- Mails Department etc.
Functions of the personnel department
- Recruitment of staff to fill vacant positions.
- Handling of staff welfare matters including arrangements for medical care, safety etc.
- Discipline of staff – including suspension, demotion and dismissal.
- Appraisal, promotion and fixing of the remuneration of employees.
- Effecting inter and intradepartmental transfer of relevant staff.
- Maintenance of good industrial and labour relations thereby ensuring industrial peace.
- Liaising with trade unions within and outside the organization.
- Organizing courses for staff e.g. induction course, seminars, workshops and symposia.
- Human Resources Planning – i.e. planning and projecting the manpower needs of the organization and designing ways of meeting them.
- Keeping of personnel (Staff) records.
Functions of the finance/accounts department
- Control of expenditure or costs.
- Keeping of proper books of account i.e. recording of the financial transactions of the business.
- Collection of money being paid to the organization.
- Payment of money on behalf of the organization.
- Preparations /payment of staff salaries.
- Advising management on financial matters
- State four functions of the Personnel Department.
- 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
- 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.
- Responsibility to Customers: This defines the obligation to offer quality product and services that will satisfy the wants of the customers.
- 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.
- Responsibility to Employees: This includes the provision of working tools, conducive working environment, staff welfare package, training and staff development programmes.
- Responsibility to Shareholders: This includes making an adequate profit and declaring commensurate dividends.
- Who are the stakeholders in a business organization?
- Explain what is meant by the social responsibility of business.
Essential Commerce for senior secondary schools by O. A. Longe. Pages 231-240.
- State five functions of the finance department in a business establishment.
- 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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