business studies - social responsibility of business and business ethics

Class 11 - Business Studies

Social Responsibility of Business and Business Ethics

MCQ
Q&A
Question:

"A business owes curtain obligations towards different groups."Identify those groups and explain the obligation of business towards those groups.
Or
Explain social responsibility of a business towards different interest groups.

Answer:

Social responsibility of government towards different groups is explained below:

  1. Shareholders or investors: Social responsibility of business towards its shareholders or investors is most important of all other obligations.
    If a business satisfies its funders, they are likely to invest more money in a project. As a result, more funds will flow in and the same can be utilised to modernize, expand and diversify the existing activities on a larger scale. Happy financiers can fulfill the rising demand of funds needed for its growth and expansion.
  2.  Personnel: Social responsibility of business towards its personnel is important because they are the wheels of an organization. Without their support, the commercial institution simply can't function or operate.
    If a business takes care of the needs of its human resource (for e.g. of office staff, employees, workers, etc.) wisely, it will boost the motivation and working spirit within an organization. A happy employee usually gives his best to the organization in terms of quality labour and timely output than an unsatisfied one. A pleasant working environment helps in improving the efficiency and productivity of working people. A good remuneration policy attracts new talented professionals who can further contribute in its growth and expansion.
    Thus, if personnel are satisfied, then they will work together very hard and aid in increasing the production, sales and profit.
  3.  Consumers or customers: Social responsibility of business towards its consumers or customers matters a lot from sales and profit point of view. Its success is directly dependent on their level of satisfaction. Higher their rate of satisfaction greater is the chances to succeed.
    If a business rolls out good-quality products and/or delivers better quality services that too at reasonable prices, then it is natural to attract lots of customers. If the quality-price ratio is maintained well and consumers get worth for their money spends, this will surely satisfy them. In the long run, customer loyalty and retention will grow, and this will ultimately lead to profitability.
  4. Government: Social responsibility of business towards government's regulatory bodies or agencies is quite sensitive from the license's point of view. If permission is not granted or revoked abruptly, it can result in huge losses to an organization. Therefore, compliance in this regard is necessary.
    Furthermore, a business must also function within the demarcation of rules and policies as formulated from time to time by the government of state or nation. It should respect laws and abide by all established regulations while performing within the jurisdiction of state.
    Some examples of activities a business can do in this regard:
    (a) Licensing an organization,
    (b) Seeking permissions wherever necessary,
    (c) Paying fair taxes on time,
    (d) Following labour, environmental and other laws, etc.
    (e) If laws are respected and followed, it creates goodwill of business in the eyes of authorities. Overall, if a government is satisfied it will make favourable commercial policies, which will ultimately open new opportunities and finally benefit the organization sooner or later.
    Therefore, satisfaction of government and local administrative bodies is equally important for legal continuation of business.
  5. Local community: Social responsibility of business towards the local community of its established area is significant. This is essential for smooth functioning of its activities without any agitations or hindrances.
    A business has a responsibility towards the local community besides which it is established and operates from. Industrial activities carried out in a local area affect the lives of many people who reside in and around it. So, as a compensation for their hardship, an organization must do something or other to alleviate the intensity of suffering.
    (a) As a service to the local community, a business can build.
    (b) A trust-run hospital or health centre for local patients.
    (c) A primary and secondary school for local children.
    (d) A diploma and degree college for local students.
    (e) An employment centre for recruiting skilled local people, etc.
    Such activities to some extent may satisfy the people that make local community and hence their changes of agitations against an establishment are greatly reduced. This will ensure the longevity of a business in the long run.
  6. Environment: Social responsibility of business with respect to its surrounding environment can't be sidelined at any cost. It must show a keen interest to safeguard and not harm the vitality of the nature. A business must take enough care to check that its- activities don't create a negative impact on the environment. For example, dumping of industrial wastes without proper treatment must be strictly avoided. Guidelines as stipulated in the environmental laws must be sincerely followed. Lives of all living beings are impacted either positively or negatively depending on how well their surrounding environment is maintained (naturally or artificially). Humans also are no exception to this. In other words, health of an environment influences the health of our society. Hence, environmental safety must not be an option else a top priority of every business.
  7. Community: Finally, social responsibility of business in general can also contribute to make the lives of people a little better.
  8. Some examples of services towards public include: (a) Building and maintaining devotional or spiritual places and gardens for people,
    (b) Sponsoring the education of poor meritorious students,
    (c) Organizing events for a social cause, etc.
    (d) Such philanthropic actions create a goodwill or fame for the business organization in the psyche of general public, which though slowly but ultimately pay off in the due course of time.


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Questions and Answers


Social Responsibility of Business and Business Ethics - Questions
1.

What do you understand by social responsibility of business? How is it different from legal responsibility?


Answer
2.

What is environment? What is environmental pollution?


Answer
3.

What is business ethics? Mention the basic elements of business ethics.


Answer
4.

Briefly explain (a) Air pollution, (b) Water pollution, and (c) Land pollution.


Answer
5.

What are the major areas of social responsibility of business?


Answer
6.

Discuss the forces which are responsible for increasing concern of business enterprises towards social responsibility.


Answer
7.

Business is essentially, a social institution and not merely a profit making activity.' Explain.


Answer
8.

Why do the enterprises need to adopt pollution control measures?


Answer
9.

What steps can an enterprise take to protect the environment from the dangers of pollution?


Answer
10.

Define corporate social responsibility.


Answer
11.

What is the relation between ethics and moral values?


Answer
12.

Mention two responsibilities of business towards customers.


Answer
13.

Give any two reasons supporting social responsibilities.


Answer
14.

Name any two factors which affect the ethical behaviour of a business.


Answer
15.

Give any one point of difference between ethics and law.


Answer
16.

Do businessmen have skill to tackle social problems?


Answer
17.

What is environmental pollution?


Answer
18.

What is the reality of social responsibilities?


Answer
19.

What is code of ethics?


Answer
20.

Give any one difference between ethics and law.


Answer
21.

What are the obligations of a business in the name of social responsibility?


Answer
22.

Name any four elements of business ethics.


Answer
23.

Explain the obligations of business towards owners and investors.


Answer
24.

What are the responsibilities of business towards employees and customers?


Answer
25.

Which eight problems have been identified by the United Nations which cause damage to natural environment?


Answer
26.

Social responsibility is not an area of business. Do you agree? Justify.


Answer
27.

Explain the need for social responsibility.


Answer
28.

Why should a business do any thing for society at large?


Answer
29.

Describe the reality of social responsibilities of a company.


Answer
30.

What do you mean by the principle derived from social values which guide and govern the conduct of businessmen? Explain the factors governing these principles and values.


Answer
31.

Explain the various elements of business ethics.


Answer
32.

What do you mean by the principles derived from social values which guide and govern the conduct of businessmen?


Answer
33.

Give any two reasons against social obligation.


Answer
34.

Define pollution.


Answer
35.

What are the core objectives of social responsibility of business?


Answer
36.

How can a business enterprise improve its public image by performing social responsibilities?


Answer
37.

What obligation does a businessman have towards the government?


Answer
38.

Describe the obligations of business towards owners and shareholders .


Answer
39.

What is corporate social responsibility? Is it similar to business ethics?


Answer
40.

Explain the reality of social responsibility.


Answer
41.

"A business owes curtain obligations towards different groups."Identify those groups and explain the obligation of business towards those groups.
Or
Explain social responsibility of a business towards different interest groups.


Answer
42.

"Like an individual, business enterprise should also be a loyal citizen to the state."Discuss.


Answer
43.

If you start a business, which objective will be of utmost importance to you and why?


Answer
44.

Business ethics and social responsibility are not synonyms but are closely related. Substantiate.


Answer
45.

Build up arguments for and against social responsibilities.


Answer
46.

Give any four reasons against the social responsibilities of business.


Answer
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