Factors increasing social responsibility of private sector

Factors increasing social responsibility of private sector

The first factor that could enhance the motivations of private sector for social partnership and increased social responsibility is economic prosperity. If the economy of country comes out of recession and enterprises experience convenience in their work; they will relieve from restrictive policy. Unfortunately, fulfilling social responsibility is considered extracurricular that is rarely considered when enterprises have restrictive policy with minimum budget. Thus, flourishing leads to providing the ground for more presence in social responsibility. The second factor is education; the government, business organizations such as chambers of commerce and big enterprises should try more for promoting these concepts so that people could know activity in social responsibility benefits from how spread and diversity. The next effective factor is promotion of social responsibility. Although I believe that social responsibility is a task and duty; application of encouraging and promotional policies helps acceleration of performing these tasks in economic corporates. The other effective issue in this area is proper approach of government to this issue. Unfortunately, policies of governmental sector is not that much encouraging for private sector in performing social responsibility. For example, in Taxation Affairs Organization, the expense of an enterprise for social responsibility is rejected and not accepted as social responsibility expense; while the enterprise has paid these costs from his revenues. Despite the fact that this issue in some way is in direct taxation law, auditors deny these costs through instructions, bylaws and different ways. The other example is the performance of social security organization; this organization behaves strictly with companies having such behaviors; even, it sometimes demands paying insurance costs which is a bad joke. On the other hand, the behavior of governmental organizations that are responsible for various social areas with economic enterprises is not positive and welcoming. Despite the fact that some festivals are hold as "School construction charities", when an enterprise enters these areas, governmental organizations just look at it as financing source and they are unwillingness to accept the presence of private sectors with its thoughts, suggestions and innovation. However, this doesn’t decrease the motivation of private sector since I as someone who pays for it, consider some rights for myself to say my opinion. For example, I believe that it is possible to construct higher quality schools rather than strict buildings that educational organization builds. In addition, these costs that the authorities declare are spent for construction of schools are higher than the estimations of big and valid construction companies. However, the authorities don’t pay attention to such points. Thus, the government will not provide the opportunity for private sector to assert its opinions. In governmental sector, updated managerial approaches have not been considered; we require updated trainings of public management including the role of private sector in governing the country and part of which is that how the government should encourage the private sector to take more responsibility. In realm of economy, that is the main task of private sector, we see the interference of government; let alone the complementary tasks such as social responsibilities where the government doesn’t let the private sector. It should be asked whether in different governments, the board of ministries have even once considered the social responsibility and the interaction of government with private sector? What have the government done for social responsibility of private sector and economic enterprises? What plans does it have?

Pedram Sultani; Vice-president of Iran chamber of commerce

Published in Tejarat-e- Farda weekly