Responsibility of Business towards Government
In any country, the government strives hard to preserve the businesses and empower their growth. For this, the Indian government has passed many acts and has laid down many rules and regulations. While taking benefit of these rules, businesses should also be responsible for the government.
When the business discharges its responsibilities the government sincerely and effectively, the government becomes more capable to function more efficiently. It is in the welfare of the entire community and indirectly in the interest of the business. The prospects of the business depend upon the status of the community. The growth of a business depends upon the development of the community; therefore, the business has got to be very particular about discharging its obligations towards the government.
Here are the major responsibilities of the business towards the government that every business must follow:
The Responsibility of Business towards Government
Timely Payment of Taxes
The government has levied various taxes on business units like 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 in order to continue their operations. These can include taxes on revenue, tariffs on imported products and different administrative fees required to register the business. You should be aware of that withholding this payment, mainly taxes is considered a crime.
The Obligation of Rules and Regulation
The laws reflect the wishes of the community, they present what the community wants the member to do and what the community wants the member to ignore. The laws control the persons with each other and with 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.
If you are just setting up your business, you need to follow the guidelines set by the government of India to establish in any business if you are in India. However, you can suggest the government to modify the rules if it is in the interest of the society.
Become Socially Responsible
Apart from the legal responsibilities, the business needs to take up some moral responsibilities towards society. Hence, the business should provide training facilities for unemployed people so that they can get absorbed in some occupation or can establish self-employment units.
It is supportive in winning them sympathy from the community. This is a vital and major investment made by the business.
Companies must disclose all the financial statements to the government through tax returns. If the company holds the ownership of shares of stock, it should be made available to the public also.
This financial disclosure brings transparency that helps to ensure that the organization is not violating any laws, like withholding taxes and to aid the public in deciding whether to invest in the company.
Sometimes, the government needs inputs of technical economic-financial, or political importance for creating proper policies. The business holds contacts in various sections of society.
This is the responsibility of business towards the government that it will provide accurate information to the government. They can be helpful for the collection he necessary information and providing it to the government.
When a rule is imposed based on accurate inputs, it has great chances of achieving success.
Earning Foreign Exchange
The government expects from the business that it will earn foreign currency by exporting goods in the foreign market. This term also comes under the responsibility of business towards the government. Especially large scale businesses should enter in export trade to earn foreign exchange.
They should enable the government to import capital goods and technical know-how. Also, businesses must follow all the rules and regulations about imports and exports.
Political stability is another major responsibility of business towards the government. For economic development, national security, political stability are mandatory. A well-established government always brings more returns and peace in a democratic atmosphere.
Business units should avoid partnering and support those groups or individuals who are responsible for creating a political disturbance.
Additional Points on the Responsibility of Business towards Government
- The business should help the government during natural calamities.
- When you are running a firm in the country, you should not seek any favor from government officials by bribing or influencing them.
- Providing financial and other support to the welfare schemes of the government.
Hopefully, you found this post helpful and make your business successful with this guide.
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