Responsibility of Business towards Government
In any country, the government strives hard to preserve businesses and empower their growth. For this, the Indian government has passed many acts and laid down many rules and regulations. While taking advantage of these rules, businesses should also be responsible to the government.
When businesses discharge their responsibilities to the government sincerely and effectively, the government becomes more capable of functioning efficiently. This benefits the entire community and indirectly serves the interests of the business.
The prospects of a business depend on the status of the community. The growth of a business relies on the development of the community; therefore, businesses must be very particular about fulfilling their obligations towards the government.
Here are the major responsibilities of a business towards the government that every business must follow:
The government has imposed various taxes on business units, such as sales tax, corporate tax, excise duty, etc. With this tax revenue, the government works to provide improved infrastructure and other welfare facilities.
Businesses must pay taxes and fees to the government to continue their operations. These can include taxes on revenue, tariffs on imported products, and various administrative fees required to register the business.
You should be aware that withholding this payment, especially taxes, is considered a crime.
The laws reflect the wishes of the community; they indicate what the community wants its members to do and what it wants them to ignore. The laws govern the interactions among individuals and between individuals and the community.
The organizations are required to follow all the rules and regulations laid by the government. When business obeys laws the society can perform smoothly and business can progress only when the society is functioning smoothly but when laws are oppressive the path of business, they can be opposed in a constitutional way.
Organizations are required to follow all the rules and regulations laid down by the government. When businesses obey laws, society can function smoothly, and business can progress only when society is functioning smoothly. However, when laws become oppressive to the path of business, they can be opposed in a constitutional manner.
If you are setting up your business, you need to follow the guidelines set by the government of India to establish any business in India. However, you can suggest to the government to modify the rules if it is in the interest of society.
Apart from legal responsibilities, businesses need to take on moral responsibilities towards society. As a business you can set up training facilities for unemployed people so that they can find employment or establish self-employment units.
It is supportive in winning sympathy from the community. This is a vital and significant investment made by the business.
Companies must disclose all financial statements to the government through tax returns. If a company holds ownership of shares of stock, it should also make them available to the public.
This financial disclosure brings transparency, helping to ensure that the organization is not violating any laws, such as withholding taxes, and aids the public in deciding whether to invest in the company.
Sometimes, the government requires inputs of technical, economic, financial, or political importance for creating proper policies. It is the responsibility of businesses towards the government to provide accurate information.
Businesses have contacts in various sections of society. They can assist in the collection of necessary information and provide it to the government.
When a rule is imposed based on accurate inputs, it has a greater chance of achieving success.
Another term that comes under the responsibility of businesses towards the government includes earning foreign exchange. The government expects businesses to earn foreign currency by exporting goods to foreign markets.
This responsibility of businesses towards the government includes engaging in export trade, particularly for large scale businesses, to earn foreign exchange.
They should enable the government to import capital goods and technical know-how. Additionally, businesses must adhere to all rules and regulations regarding imports and exports.
Political stability is another major responsibility of businesses towards the government. For economic development, national security, and political stability are essential. A well-established government brings more returns and peace in a democratic atmosphere.
Business units should avoid partnering with and supporting groups or individuals responsible for creating political disturbances.
The business should aid the government during natural calamities.
When running a firm in the country, one should refrain from seeking any favor from government officials through bribery or influence.
Providing financial and other support to government welfare schemes is also important.
Hopefully, you found this post helpful and make your business successful with this guide.
For any doubt or questions, feel free to comment below. Our team is always there to answer your confusions. Don't forget to subscribe to The CEO Magazine and get all the latest updates in your inbox.
Follow us on Google News
