The three arguments in favour of social responsibility of business are
(i) Justification for’Existence and Growth Business exists for providing goods and services to satisfy human needs. Thus, it is necessary to provide continuous service to society for the prosperity and growth of business and to give justification for existence and growth.
(ii) Long-term Interest of the Firm In the long run, every firm wants to conduct its business.
Thus, it is necessary to give best services to the people. If in case, the members of society-including workers, consumers, shareholders, government officials, feel that business enterprise is not serving its best interest, they will tend to withdraw their cooperation to the concerned enterprise. So, we cam say that it is in own, interest of an enterprise to fulfill social responsibility and this would improve the image too.
(iii) Avoidance of Government Regulation From the point of view of a business, government regulations are undesirable because they limit freedom. But on the same side it is also true that business can survive only when there is law and order in society.