In countries which have free market economies and where the Industrial enterprise is permissible, business has a special role to play in the advent of industrialism. The labor which was being exploited rose in rebellion in many countries and formed unions. The  social changes compelled the State to undertake responsibility for regulating business. The employers were made to provide minimum facilities to the employees. The concept of welfare State gave a new tempo to the social responsibility of business. Modern society being highly complex, the private sector is obliged to manage its affairs more respectably.

Modern society being highly complex, the economy comprises innumerable wings and sectors. The emergence of the public sector has given a new dimension of competition to the private sector. The private sector is now obligated to manage its affairs more respectably to survive. The theories of socialism which are pervading modern political thought and action throughout the world are already putting the private sector to caution so that it should continue only if it is making a healthy contribution to the national economy and is not a drain on the national resources or on its citizens in any manner. The concept of private profit has been given a secondary place, the first being the welfare of masses who nowadays hold the strings of political power.