Chapter 6: Social Responsibilities of Business and Business Ethics – Class 11 Business Studies Notes

Class 11 Business Studies Notes for Chapter 6: Social Responsibilities of Business  and Business Ethics

Get Class 11 Business Studies Notes, Questions and Practice Papers for Chapter 6: Social Responsibilities of Business and Business Ethics. Candidates who want to pass Class 11 with a good grade can use this article for Notes, Questions, and Practice Papers.

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Chapter Definitions and Short Notes

Chapter 6: Social Responsibilities of Business  and Business Ethics – Short Notes and Definitions

 Introduction

Social responsibility in business is the idea that companies should not only focus on making profits but also consider the interests and well-being of society. This means businesses should engage in actions that benefit society, like respecting social values, protecting the environment, and treating employees well, while avoiding harmful practices such as pollution, exploiting workers, or selling unsafe products.

Short Pointers:

  • Businesses should balance making profits with the welfare of society.
  • Avoiding harmful practices like pollution and exploitation is key.
  • Engaging in positive actions, such as respecting social values and protecting the environment, is important.
  • Social responsibility can improve a business’s image and lead to long-term success.

Social Responsibility of Business

The concept of social responsibility in business means that a company is obligated to make decisions and take actions that are good for society, not just for its own profits. This concept challenges the traditional view that businesses exist solely to make money for their owners.
Instead, it suggests businesses should also care about the social and environmental impact of their operations. This involves voluntary efforts to meet society’s expectations and values, beyond just following the law.

Short Pointers:

  • Social responsibility goes beyond making profits; it includes caring for societal values and objectives.
  • Businesses should voluntarily contribute to societal goals while pursuing their profit interests.
  • This concept is broader than legal responsibility, implying actions beyond just legal compliance.
  • Acting responsibly means considering the impact of business decisions on society and the environment.

Types of Social Responsibility in Business

Social responsibility in business is divided into four main types: Economic, Legal, Ethical, and Discretionary responsibilities.
Economic responsibility involves producing goods and services society needs at a profit. Legal responsibility requires businesses to follow all laws and regulations.
Ethical responsibility encompasses actions society expects of businesses but aren’t required by law, like respecting cultural values. Discretionary responsibility is voluntary and includes actions like donations to charities or aiding in disaster relief, aimed at improving public image and contributing positively to society.

Short Pointers:

  • Economic Responsibility: Produce needed goods and services profitably.
  • Legal Responsibility: Abide by laws and regulations.
  • Ethical Responsibility: Go beyond the law to respect societal values and dignity.
  • Discretionary Responsibility: Voluntarily support community initiatives and charities.
  • Social responsibility includes both mandatory actions (legal, economic) and voluntary actions (ethical, discretionary) towards society.

Need for Social Responsibility

Social responsibility is important for businesses because they are part of society and rely on it to exist and prosper. It involves considering the interests of different societal groups like customers, employees, suppliers, and the community, and making decisions that benefit not only the business but also these groups.
The need for social responsibility arises from the ethical obligation to do what is right and just, rather than focusing solely on profits. This includes voluntary actions by businesses to address social, ethical, and environmental issues, reflecting a moral understanding of right and wrong.
The debate on social responsibility highlights differing views on whether businesses should prioritise their owners’ profit desires or the broader societal good.

Short Pointers:

  • Businesses are part of society and should maintain a healthy relationship with it.
  • Social responsibility serves the interests of customers, employees, suppliers, and the community.
  • It is fundamentally an ethical issue, involving moral decisions about right and wrong.
  • Includes voluntary actions to address societal needs beyond profit-making.
  • Debate exists on whether the sole responsibility of business is towards its owners or to society at large.

Arguments in Favour of Social Responsibility

The concept of social responsibility holds that businesses should go beyond profit-making to benefit society. This involves justifying their existence by continuously serving society with good quality and fairly priced products, and avoiding unfair practices.
Social responsibility helps businesses in the long run by ensuring society’s support and cooperation, avoiding government regulations through voluntary action, and using their resources to address and solve social problems. It also turns societal challenges into business opportunities, creates a better environment for business operations, and holds businesses accountable for addressing the social problems they might contribute to, like environmental pollution and workplace safety.

Short Pointers:

  • Social responsibility justifies a business’s existence and growth through service to society.
  • It secures long-term success by aligning with society’s interests, improving public image.
  • Voluntarily adopting social responsibilities can reduce the need for government regulation.
  • Businesses have resources that can help solve societal problems.
  • Turning societal problems into business opportunities benefits both society and the business.
  • A responsible business contributes to a better societal environment, aiding its survival.
  • Businesses should address social problems they contribute to, like pollution or unsafe work conditions.

Arguments Against Social Responsibility

Some argue against social responsibility in business, believing it contradicts the main goal of profit maximisation. They argue that focusing on social issues could distract businesses from their economic productivity, leading to reduced profits.
Additionally, costs associated with social responsibility, like environmental protection, might be passed on to consumers through higher prices. Critics also point out that businesses lack the expertise to tackle social problems, which should be addressed by specialised agencies instead.
Moreover, there is a perceived lack of public support for business involvement in social programs, suggesting that businesses may not receive the cooperation needed to effectively address social issues.

Short Pointers:

  • Profit Maximisation: Critics argue social responsibility conflicts with the primary goal of profit maximisation.
  • Burden on Consumers: Costs of social responsibility may lead to higher prices for consumers.
  • Lack of Social Skills: Businesses may not have the necessary skills to address social issues effectively.
  • Lack of Public Support: There’s a perceived lack of public enthusiasm for business involvement in social initiatives.

 The reality of Social Responsibility

The reality of social responsibility in business reflects a balance between the need for profit maximisation and societal obligations. Businesses recognise that to sustain and grow, they must address the concerns of various stakeholders, including employees, consumers, and society at large.
Factors pushing businesses towards social responsibility include the threat of public regulation, pressure from labour movements, rising consumer awareness, the development of social standards for business, educational advancements emphasising the social purpose of business, the understanding that social and business interests are interconnected, and the emergence of a professional managerial class with a strong orientation towards social responsibility.
These elements underscore the realisation that businesses, while primarily economic entities, are integral parts of society and must operate in ways that fulfil both their economic objectives and societal expectations.

Short Pointers:

  • Threat of Public Regulation: Businesses aim to be socially responsible to avoid government regulation.
  • Pressure of the Labour Movement: Worker welfare and rights have become a priority due to strong labour movements.
  • Consumer Awareness: Educated consumers demand higher standards, forcing businesses to adopt customer-oriented policies.
  • Social Standards: Society expects businesses to serve social needs, not just focus on profit-making.
  • Business Education: Emphasises the importance of social responsibility in the business curriculum.
  • Interconnected Interests: Businesses recognise that serving society well is in their long-term interest.
  • Professional Managerial Class: A new class of managers prioritises fulfilling social responsibilities alongside economic goals.

Social Responsibility Towards Different Interest Groups

Social responsibility in business refers to the obligations that a business has towards various groups in society, including shareholders or owners, workers, consumers, and the community and government.
For shareholders, businesses should ensure a fair return on investment and protect their investments. For workers, businesses are expected to provide good working conditions, respect their rights to form unions, and offer fair wages. For consumers, the responsibility includes providing quality goods and services at reasonable prices and ensuring honest marketing practices.
For the government and community, businesses should comply with laws, pay taxes honestly, protect the environment, and contribute positively to societal values and community development.

Short Pointers:

  • Shareholders/Owners: Ensure fair return and safety of their investment.
  • Workers: Provide good working conditions, respect union rights, and ensure fair wages.
  • Consumers: Offer quality products at fair prices and practise honest marketing.
  • Government and Community: Comply with laws, pay taxes, protect the environment, and uphold societal values.

Corporate Social Responsibility (CSR) Under the Companies Act, 2013

Corporate Social Responsibility (CSR) is a legal obligation for certain companies in India, as mandated by the Companies Act, 2013.
This requirement applies to companies with a net worth of ₹500 crores or more, a turnover of ₹1000 crores or more, or a net profit of ₹5 crores or more. Such companies must allocate 2% of their average net profit from the past three years to activities that support social causes.
This legislation ensures that larger corporations contribute directly to societal development and welfare through targeted social responsibility initiatives.

Short Pointers:

  • CSR Requirement: Applicable to companies meeting specific financial criteria.
  • Financial Thresholds: Net worth ≥ ₹500 crores, Turnover ≥ ₹1000 crores, or Net profit ≥ ₹5 crores.
  • Mandatory Allocation: 2% of average net profit over the past three years to be dedicated to social causes.
  • Purpose: To ensure that significant corporate entities contribute to societal welfare and development.

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NCERT Solutions

NCERT Solutions for Class 11 Business Studies – Chapter 6: Social Responsibilities of Business  and Business Ethics

 Short Answer Questions

  1. What do you understand about the social responsibility of business? How is it different from legal responsibility?

Answer: Social responsibility of business refers to the voluntary actions taken by a business to contribute positively to society beyond just making profits. Businesses are expected to respect social values and consider the welfare of the community, such as providing good quality products, ensuring safe working conditions, and taking care of the environment. On the other hand, legal responsibility involves adhering to the laws and regulations set by the government, which are mandatory. Unlike legal responsibilities, which are fulfilled by compliance with laws, social responsibilities include additional voluntary commitments to benefit the society, which are not strictly required by law. Therefore, social responsibility is broader than legal responsibility as it encompasses a willingness to go beyond the minimal legal requirements to improve the quality of life for the community and the environment.

Mindmap to remember this answer:

  • Social Responsibility: Voluntary actions, Benefits to society, Examples: Quality products, safe work environment, environmental care
  • Legal Responsibility: Mandatory compliance, Governed by law
  • Key Differences: Social responsibility is broader, Includes voluntary commitments, Not limited to legal compliance
  • Importance: Goodwill and long-term success, Ethical standards beyond the law
  1. What is the environment? What is environmental pollution?

Answer: The environment encompasses all that surrounds us, including both natural resources like land, water, air, plants, animals, and minerals, and man-made resources such as our cultural heritage and socio-economic institutions. Environmental pollution occurs when harmful substances are introduced into the environment. These substances can alter the physical, chemical, and biological characteristics of our surroundings—air, land, and water. This change can harm not only humans but also other species, making the environment less hospitable and healthy for us to live in. Essentially, environmental pollution disrupts the balance of our ecosystems, leading to health hazards and a diminished quality of life for all living organisms.

Mindmap to remember this answer:

  • Environment: Includes natural and man-made resources, Examples: Land, water, air, fauna, flora, cultural heritage
  • Environmental Pollution: Harmful substances introduced into the environment, Affects air, land, water, Changes physical, chemical, biological characteristics
  • Impacts: Harm to human life and other species, Degrades quality of life and ecosystem health
  • Key Concepts: Balance of ecosystems, Health hazards
  1. What is business ethics? Mention the basic elements of business ethics.

Answer: Business ethics refers to the moral principles that guide the behaviour and operations of a business and its relationship to the welfare of society. It is derived from societal norms and ideals about what is right and wrong. These ethics govern how a business conducts itself in various situations, aiming to align its practices with the good of the community and society at large.

The basic elements of business ethics include:

  • Top Management Commitment: This means that the leaders of the company must be fully committed to ethical behaviour, setting a clear example for all employees.
  • Publication of a ‘Code of Ethics’: A code of ethics is a formal document that outlines the values and ethical standards that a business pledges to uphold.
  • Establishment of Compliance Mechanisms: These are systems put in place to ensure employees follow the code of ethics and the company’s ethical standards.
  • Involving Employees at All Levels: Ethics programmes should involve employees from every level of the organisation to foster a culture of ethical behaviour throughout.
  • Measuring Results: Regularly evaluating the outcomes of ethics programmes and the overall ethical climate of the business to ensure they are effective.

Mindmap to remember this answer:

  • Business Ethics: Definition: Moral principles guiding business actions, Focus: Align business practices with societal welfare
  • Key Elements: Top management commitment, Code of Ethics publication, Compliance mechanisms, Employee involvement, Results measurement
  • Purpose: Ensure business aligns with social norms and values, Foster ethical culture within the business

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

Answer: Pollution affects our environment in various detrimental ways, and it mainly manifests in three forms: air, water, and land pollution.

(a) Air Pollution: This type of pollution occurs when harmful substances like carbon monoxide from automobiles and chemicals from manufacturing plants are released into the atmosphere. These pollutants can significantly reduce air quality, contributing to environmental issues such as the depletion of the ozone layer, which serves as a protective shield for the Earth against harmful ultraviolet rays.

(b) Water Pollution: Water pollution happens when chemicals and wastes are dumped into water bodies such as rivers and streams. This kind of pollution is especially harmful to aquatic life, often leading to the death of numerous aquatic animals. Additionally, it poses severe threats to human health and can affect drinking water supplies, agriculture, and recreational activities.

(c) Land Pollution: This pollution is caused by the improper disposal of waste, particularly toxic wastes that are dumped on land. The presence of such contaminants deteriorates the soil quality, making it unsuitable for agriculture or the natural growth of plants. This not only affects food production but also disrupts local ecosystems.

Each type of pollution has specific causes and dire consequences, stressing the importance of responsible waste management and environmental protection measures to ensure the health of our planet and its inhabitants.

Mindmap to remember this answer:

  • Air Pollution: Causes: Automobiles, factories. Effects: Ozone layer damage, health risks.
  • Water Pollution: Causes: Chemicals, waste in water bodies. Effects: harm aquatic life, and threaten human health.
  • Land Pollution: Causes: Dumping toxic wastes. Effects: Unfit soil for agriculture, ecosystem disruption.
  • Key Concepts: Environmental Protection. Responsible waste management. Health and ecosystem impacts.
  1. What are the major areas of social responsibility of business?

Answer: The social responsibility of a business encompasses several key areas, reflecting its duty not only to shareholders but also to other stakeholders including employees, consumers, the government, and the community at large.

  • Responsibility towards Shareholders or Owners: The business must provide a fair return on investment to its owners and ensure the safety and growth of their investments. It is essential to operate in a manner that increases the value of the business, benefiting the shareholders financially.
  • Responsibility towards Workers: A business has a duty to provide a safe and healthy working environment for its employees. It involves ensuring fair wages, offering growth opportunities, and respecting workers’ rights, including the right to unionise. Creating a supportive environment helps in fostering loyalty and productivity among workers.
  • Responsibility towards Consumers: Businesses must focus on delivering products and services that meet the quality and safety standards expected by consumers. They should engage in fair marketing practices and ensure that their products are priced reasonably and are safe to use.
  • Responsibility towards Government and Community: It is important for businesses to comply with legal standards and contribute to the community’s welfare. This includes paying taxes promptly, adhering to environmental standards, engaging in community development projects, and maintaining ethical practices that align with societal values.

By fulfilling these responsibilities, businesses not only adhere to legal and ethical standards but also contribute positively to society, enhancing their own long-term success and sustainability.

Mindmap to remember this answer:

  • Shareholders/Owners: Fair returns, investment safety
  • Workers: Fair wages, safe conditions, rights respect
  • Consumers: Quality products, fair prices, safe usage
  • Government/Community: Legal compliance, taxes, community support

Key Concepts:

  • Ethical practices
  • Community involvement
  • Legal compliance
  • Long-term sustainability
  1. State the meaning of Corporate Social Responsibility as per the Companies Act 2013.

Answer: Corporate Social Responsibility (CSR), as defined by the Companies Act 2013, is a commitment by businesses to contribute to the economic development of a society while improving the quality of life of the workforce and their families as well as the local community and society at large. This responsibility extends beyond the statutory obligation to comply with legislation and sees corporations take further steps to improve the quality of life for employees and their families as well as for the local community and society at large.

The Act specifically requires certain companies with a substantial size, turnover, or profitability to spend a minimum percentage of their profits on CSR activities. The idea is for businesses to undertake initiatives that enhance their social and environmental contributions, ensuring ethical behaviour and respect for community interests, thus supporting sustainable development.

Mindmap to remember this answer:

  • Definition: Commitment to societal economic development. Improving life quality for workforce and community.

  • Legal Requirement: Specified companies must spend on CSR. Based on profit, size, turnover.

  • Key Concepts: Ethical behaviour. Community respect. Sustainable development.

  • Objective: Beyond legal compliance. Enhance social and environmental contributions.

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MCQ Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – MCQ Questions

 MCQ Type Questions

  1. What is the primary social responsibility of a business enterprise?
A) To generate maximum profits for its ownersB) To engage in fair and ethical practices
C) To produce goods and services society needs and sell them at a profitD) To avoid government regulations

Answer: C) To produce goods and services society needs and sell them at a profit

  1. According to the textbook, which of the following is not a type of social responsibility?
A) Economic responsibilityB) Legal responsibility
C) Environmental responsibilityD) Discretionary responsibility

Answer: C) Environmental responsibility

  1. Which argument against social responsibility claims that business exists only for profit maximisation?
A) Violation of profit maximisation objectiveB) Burden on consumers
C) Lack of social skillsD) Lack of broad public support

Answer: A) Violation of profit maximisation objective

  1. In the context of environmental protection, what role is expected from business enterprises?
A) Only to comply with the lawsB) To lead with innovative pollution control solutions
C) To focus solely on profit maximisationD) To avoid participation in governmental programs

Answer: B) To lead with innovative pollution control solutions

  1. What does the ‘Code’ in a business ethics program typically cover?
A) Only financial reporting and transparencyB) Product safety and quality, conflicts of interest, and employment practices among others
C) Strategies for maximising shareholder valueD) Guidelines for social media use

Answer: B) Product safety and quality, conflicts of interest, and employment practices, among others

  1. Which of the following best defines the concept of business ethics?
A) The legal framework within which businesses must operateB) The moral principles that should govern business activities to benefit society
C) The strategies businesses use to maximise their profitsD) The policies a company implements to comply with international standards

Answer: B) The moral principles that should govern business activities to benefit society

  1. How can a firm demonstrate its ethical responsibility, as per the textbook?
A) By strictly adhering to legal standards without exceptionB) By engaging in practices that are desirable from society’s point of view, even if not required by law
C) By maximising shareholder returns at all costsD) By ensuring that their business practices are transparent only to the board of directors

Answer: B) By engaging in practices that are desirable from society’s point of view, even if not required by law

  1. Which of the following is a major cause of air pollution, according to the textbook?
A) The excessive use of natural resourcesB) Emissions from automobiles and manufacturing plants
C) Overpopulation in urban areasD) Unregulated agricultural activities

Answer: B) Emissions from automobiles and manufacturing plants

  1. What is the role of business in environmental protection, as stated in the textbook?
A) To follow government regulations only when they align with business interestsB) To lead by example in developing solutions and controlling pollution at the source
C) To invest solely in profitable environmental projectsD) To ensure minimal compliance with existing environmental laws

Answer: B) To lead by example in developing solutions and controlling pollution at the source

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Very Short Answer Type Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – Very Short Answer Type Questions

  1. What does the concept of social responsibility of business signify?

Answer: Social responsibility signifies a business’s obligation to pursue goals beneficial to society beyond profit.

  1. How do legal obligations differ from social responsibility?

Answer: Legal obligations are mandated by law, whereas social responsibility includes voluntary ethical actions.

  1. Name one responsibility of a business enterprise towards consumers.

Answer: Ensure product quality and service integrity for consumers.

  1. Define CSR.

Answer: CSR (Corporate Social Responsibility) is a business’s commitment to ethical operations and social welfare.

  1. What causes environmental pollution?

Answer: Environmental pollution arises from harmful substances being introduced into natural habitats.

  1. What type of pollution results from industrial waste disposal into rivers?

Answer: Water pollution results from industrial waste disposal into rivers.

  1. Name two acts enacted to protect the environment.

Answer: Two acts are the Wildlife Protection Act, 1972, and the Water Act, 1974.

  1. How can pollution control devices reduce operating costs?

Answer: Pollution control devices reduce operating costs by minimising waste and improving efficiency.

  1. Explain how rapid industrialisation damages the environment.

Answer: Rapid industrialisation often leads to increased pollution and resource depletion, harming the environment.

  1. What concept relates to the moral conduct of business?

Answer: Business ethics pertains to the moral conduct of business in society.

  1. Why are business ethics important for every business?

Answer: Business ethics are crucial for maintaining trust and achieving sustainable success.

  1. Discuss the value of ethical activities in business.

Answer: Ethical activities enhance corporate reputation and ensure long-term viability.

  1. Differentiate between ethics and laws.

Answer: Ethics involve moral judgments; laws enforce societal rules. 

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Short Answer Type Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – Short Answer Type Questions

  1. What are the social obligations a businessman should fulfil?

Answer: Businessmen should respect social values, avoid unethical practices like pollution and exploitation, and positively contribute to society by providing quality goods, ensuring fair working conditions, and honestly paying taxes.

Mindmap to remember this answer:

Respect Social Values

  • Avoid pollution, exploitation
  • Contribute: Quality goods, fair work conditions, honest taxes
  1. List some causes of environmental pollution.

Answer: Key causes of environmental pollution include industrial waste, vehicle emissions, chemical runoff, and improper waste disposal, all contributing to air, water, and land pollution.

Mindmap to remember this answer:

Industrial Waste

  • Vehicle emissions
  • Chemical runoff
  • Improper waste disposal
  1. Name some environmental problems evaluated by the United Nations.

Answer: The United Nations has evaluated problems like global warming, deforestation, ocean pollution, and loss of biodiversity as critical environmental issues.

Mindmap to remember this answer:

Global Warming

  • Deforestation
  • Ocean pollution

Biodiversity loss 

  1. Mention two campaigns organised by the government to protect natural resources.

Answer: The government has organised campaigns like the National Afforestation Programme and the Clean Ganga Campaign to protect natural resources.

Mindmap to remember this answer:

  • National Afforestation Programme
  • Clean Ganga Campaign
  1. What steps has the government taken to address pollution caused by industries?

Answer: To address industrial pollution, the government has enacted strict pollution control laws, established regulatory bodies, and mandated pollution control devices in factories.

Mindmap to remember this answer:

  • Pollution control laws
  • Regulatory bodies
  • Pollution control devices
  1. Define business ethics.

Answer: Business ethics refers to the moral principles that guide business actions and decisions, ensuring conduct that is beneficial to society and the environment.

Mindmap to remember this answer:

  • Moral principles
  • Guide business actions
  • Benefit society and environment

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Case Based Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – Case Based Questions

  1. Discuss the concept of social responsibility and explain how it extends beyond legal responsibilities for businesses. Refer to the ethical, economic, legal, and discretionary categories of social responsibilities that a business might have.

Answer: Social responsibility in business goes beyond just following laws; it includes voluntary efforts to make a positive impact on society and the environment. This concept is divided into four categories: economic, legal, ethical, and discretionary responsibilities. Economic responsibility means a business should be primarily focused on its role as an economic entity, producing goods and services that society needs and desires, while making a profit. Legal responsibility involves complying with laws and regulations. Ethical responsibility covers actions that are morally expected by society but not necessarily enforced by law, such as fairness and decency. Lastly, discretionary responsibilities are those voluntarily adopted by a business, like charitable donations or community service. Together, these responsibilities show that businesses have a duty to operate in ways that enhance society, not just to make profits.

Mindmap to remember this answer:

  • Categories of Social Responsibility: Economic: Produce desired goods, make profits. Legal: Comply with laws. Ethical: Act morally beyond law. Discretionary: Voluntary good deeds.
  • Key Concepts: Beyond legal: Includes ethical and voluntary actions. Importance: Contributes positively to society.
  • Examples: Ethical: Fairness in advertising. Discretionary: Charity, community aid.
  1. Analyse the arguments for and against the assumption of social responsibilities by businesses. Include in your discussion the impact on long-term interests of the firm, the avoidance of government regulations, and the effects on the public image and social environment.

Answer: Arguments for businesses assuming social responsibility include supporting long-term interests by improving public image and trust, which can lead to sustainable profits. This approach can also prevent the need for strict government regulations by demonstrating proactive responsibility, which helps maintain operational freedom. On the other hand, critics argue that the primary goal of businesses should be profit maximisation. They claim that social responsibilities can impose additional costs on consumers and distract from the economic aims of the business. Critics also mention that businesses lack the expertise to handle social issues, which should be managed by specialised institutions. Despite these arguments, the positive impact on a company’s long-term viability and societal approval often supports the case for assuming social responsibilities.

Mindmap to remember this answer:

  • For Social Responsibility: Long-term benefits: Improved public image, trust. Avoids government regulation: More freedom.
  • Against Social Responsibility: Cost to consumers: Higher prices. Distraction from profit-making. Lack of expertise in social issues.
  • Examples: For: Community programs enhancing brand image. Against: Costs passed to consumers in prices.

  1. Explain the various types of pollution caused by business activities and discuss the role of business in controlling environmental pollution and promoting environmental protection. Include specific steps that businesses can take according to the textbook.

Answer: Business activities can cause various types of pollution, including air, water, land, and noise pollution. For instance, factories release smoke and chemicals into the air and discharge waste materials into water bodies, contributing to widespread environmental degradation. Businesses play a crucial role in controlling pollution by adopting better technologies and practices. They can install pollution control devices, use high-quality raw materials, and implement effective waste disposal systems. Additionally, businesses can engage in activities like tree planting and community clean-ups, which promote environmental protection. By taking these actions, businesses not only comply with regulations but also contribute to a healthier environment, which is beneficial for all.

Mindmap to remember this answer:

  • Types of Pollution: Air: Smoke, chemicals. Water: Waste disposal. Land: Toxic waste dumping. Noise: Factory sounds, vehicles.
  • Role in Environmental Protection: Use better technologies. Pollution control devices. Community environmental efforts.
  • Examples: Installing filters in factories. Participating in river clean-ups.
  1. Describe the relationship between business ethics and social responsibility. Discuss how ethical practices in business can align with the overall good of society and contribute to business success.

Answer: Business ethics and social responsibility are closely linked as both involve making decisions that not only benefit the business but also positively impact society. Ethical practices in business, such as fair dealing, respecting employee rights, and honest communication with customers, naturally align with social responsibilities. By acting ethically, a business not only meets legal and economic obligations but also enhances its reputation and builds trust with stakeholders. This trust can lead to better customer loyalty, attract quality employees, and ultimately, contribute to the business’s success. Ethical practices ensure that a business is viewed as a responsible member of society, which supports its long-term sustainability and profitability.

Mindmap to remember this answer:

  • Connection: Ethics integral to responsible practices. Aligns with social expectations.
  • Benefits: Enhances reputation. Builds customer and employee trust.
  • Examples: Fair employment practices. Honest customer relations.

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Value Based Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – Value Based Questions

 Value-Based Question 1: Social Responsibility of Business

Rahul is the CEO of an electronics company, TechFuture, which has made a commitment to be socially responsible. TechFuture engages in various positive actions such as respecting social values, protecting the environment, and treating employees well. They avoid harmful practices like pollution, exploiting workers, and selling unsafe products. Rahul believes that these actions are crucial for the long-term success of his business.

Question: What steps can Rahul take to ensure that TechFuture continues to be a socially responsible business? What values are reflected in Rahul’s approach to business?

Answer: Rahul can take the following steps to ensure TechFuture remains socially responsible:

  1. Implement eco-friendly technologies to reduce environmental impact.
  2. Ensure fair labour practices and good working conditions for employees.
  3. Engage in community development programs.
  4. Adhere to ethical marketing practices and avoid misleading advertisements.
  5. Regularly assess and improve the company’s impact on society and the environment.

Values reflected in Rahul’s approach include:

  1. Concern for the environment – by using eco-friendly technologies.
  2. Respect for employees – by ensuring fair labour practices.
  3. Social contribution – by engaging in community development.
  4. Integrity – by adhering to ethical marketing practices.
  5. Accountability – by regularly assessing the company’s societal impact.

 Value-Based Question 2: Need for Social Responsibility

Sunita is the CEO of a major retail chain, ShopWell, which actively incorporates social responsibility into its business model. She believes that businesses have an ethical obligation to do what is right and just, rather than focusing solely on profits. ShopWell engages in activities that benefit customers, employees, suppliers, and the community.

Question: Why does Sunita believe that social responsibility is crucial for ShopWell? What values are highlighted by Sunita’s belief in social responsibility?

Answer: Sunita believes that social responsibility is crucial for ShopWell because it maintains a healthy relationship with society, serves the interests of various societal groups, and addresses social, ethical, and environmental issues. This holistic approach ensures long-term success and ethical business practices.

Values highlighted by Sunita’s belief include:

  1. Ethical conduct – focusing on doing what is right and just.
  2. Community engagement – serving the interests of customers, employees, suppliers, and the community.
  3. Sustainability – addressing environmental issues.
  4. Responsibility – recognizing the broader impact of business decisions on society.

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Long Answer Type Questions

Chapter 6: Social Responsibilities of Business  and Business Ethics – Long Answer Type Questions

 Case Study 1: Social Responsibility of Business

Rahul is a young entrepreneur who started his own company, GreenTech Solutions, which manufactures eco-friendly gadgets. He firmly believes that his business should not only focus on making profits but also contribute positively to society. His company respects social values, protects the environment, and ensures good working conditions for employees. Rahul’s company avoids harmful practices such as pollution, exploitation of workers, and selling unsafe products. He thinks that engaging in social responsibility will improve his business’s image and lead to long-term success.

Questions:

  1. What are some of the positive actions taken by GreenTech Solutions that reflect social responsibility?
    • Answer: GreenTech Solutions engages in positive actions such as respecting social values, protecting the environment, and ensuring good working conditions for employees. They avoid harmful practices like pollution, exploitation of workers, and selling unsafe products.
  2. According to Rahul, how does social responsibility benefit his business in the long run?
    • Answer: According to Rahul, social responsibility improves his business’s image and leads to long-term success. It ensures that the business avoids public regulation, gains the support of labour movements, avoids litigations and court cases, and contributes to the development of a professional and managerial class.

 Case Study 2: Need for Social Responsibility

Sunita is the CEO of a large retail company, RetailWorld. She understands that her business is part of society and must consider the interests of different societal groups such as customers, employees, suppliers, and the community. RetailWorld engages in voluntary actions to address social, ethical, and environmental issues. Sunita believes that focusing solely on profits is not enough and that businesses have a moral obligation to do what is right and just.

Questions:

  1. Why does Sunita believe that focusing solely on profits is not sufficient for RetailWorld?
    • Answer: Sunita believes that focusing solely on profits is not sufficient because businesses have a moral obligation to do what is right and just. This involves considering the interests of different societal groups and engaging in voluntary actions to address social, ethical, and environmental issues.
  2. Identify the societal groups RetailWorld considers in its social responsibility efforts.
    • Answer: RetailWorld considers the interests of customers, employees, suppliers, and the community in its social responsibility efforts.

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Sample Questions Paper

Chapter 6: Social Responsibilities of Business  and Business Ethics – Sample Questions Paper

Sample Question: 1

Time allowed: 2 hours Maximum Marks: 40

General Instructions:

  1. The question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A: Question numbers 1 and 2 are 1 mark source-based questions. Answers to these questions must not exceed 10-15 words.
  4. Section B: Question numbers 3 to 9 are 2 marks questions. These are very short-answer type questions. Answers should not exceed 30 words.
  5. Section C: Question numbers 10 to 12 are 4 marks questions. These are short-answer type questions. Answers should not exceed 80 words.
  6. Section D: Question numbers 13 and 14 are 6 marks questions. These are long-answer type questions. Answers should not exceed 200 words.

Section A

  1. What is the primary social responsibility of a business enterprise? Or Define the economic responsibility of a business.
  2. State any one argument against social responsibility of business.

Section B

  1. Why should business enterprises assume social responsibilities?
  2. What is ethical responsibility as per the concept of social responsibility?
  3. State any two causes of pollution.
  4. What is the need for pollution control by business enterprises?
  5. Mention one step that business can take for environmental protection.
  6. Define the concept of business ethics.
  7. What is the role of top management in fostering business ethics?

Section C

  1. Discuss any three arguments in favour of social responsibility of business.
    Or
    Explain the reality of social responsibility referring to the factors that make business conscious of it.
  2. Distinguish between civil rights and political rights as per the concept of citizenship rights.
    Or
    What do you understand about noise pollution? Why is there a need to control it?
  3. How does ethics differ from laws and regulations? Discuss the basic elements that foster business ethics.

Section D

13.Discuss in detail the need and importance of social responsibility for business enterprises.
Or
Explain the role that business can play in environmental protection. What steps has the government taken in this regard?

  1. Define business ethics. Discuss the ethical issues involved in the following: (a) Misleading advertisements (b) Exploiting workers (c) Environment pollution (d) Unethical business practices

Sample Question: 2

Time Allowed: 2 hours Maximum Marks: 40

General Instructions:

  1. The question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A Question numbers 1 and 2 are 1 mark source-based questions. Answers to these questions must not exceed 10-15 words.
  4. Section B Question numbers 3 to 9 are 2 marks questions. These are very short-answer type questions. Answers to these questions should not exceed 30 words.
  5. Section C Question numbers 10 to 12 are 4 marks questions. These are short-answer type questions. Answers to these questions should not exceed 80 words.
  6. Section D Question numbers 13 and 14 are 6 marks questions. These are long-answer type questions. Answers to these questions should not exceed 200 words.

Section A

  1. Define the term ‘business ethics’ as given in the textbook. (1 mark)
  2. Which Act emphasises the protection of the environment according to the Constitution of India? (1 mark)

Section B

  1. State any two arguments in favour of social responsibility of business. (2 marks)
  2. What is the need for pollution control by business enterprises? (2 marks)
  3. Define the term ‘social responsibility’ as given in the textbook. (2 marks)
  4. What is meant by ‘ethical responsibility’ of business? (2 marks)
  5. State any two specific steps that business can take for environmental protection. (2 marks)
  6. What is the role of top management in fostering business ethics? (2 marks)
  7. Differentiate between power and authority in the context of political institutions. (2 marks)

Section C

  1. Explain the economic and legal responsibilities of business towards society. (4 marks)
    Or
    Discuss the causes of air and water pollution by business activities.
  2. What are the benefits of pollution control measures for business enterprises? Explain any three benefits. (4 marks)
    Or
    How can business enterprises ensure ethical conduct within the organisation? Explain any three ways.
  3. Discuss the reasons that have forced and persuaded businessmen to consider their social responsibilities. (4 marks)
    Or
    ‘Business ethics refer to the socially determined moral principles which should govern business activities.’ Elaborate this statement with examples.

Section D

  1. ‘Social responsibility of business is broader than just legal responsibility.’ Explain the statement and discuss the kinds of social responsibility that a business needs to take care of. (6 marks)
    Or
    What role can business enterprises play in environmental protection? Describe the specific steps they can take.
  2. Define the concept of ethics. How is it related to business? What are the key elements that foster business ethics in an organisation? (6 marks)
    Or
    Explain the different types of pollution caused by business activities. Why is pollution control needed? Discuss the need from the perspective of society.

 

 

 

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