Chapter 6: Social Responsibilities of Business and Business Ethics
Business Studies • Class 11
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Chapter Analysis
Intermediate18 pages • EnglishQuick Summary
The chapter discusses the social responsibilities of businesses and their ethical conduct. It emphasizes that business should not only focus on profit maximization but also consider its impact on society at large. The chapter covers different kinds of responsibilities such as economic, legal, ethical, and discretionary, and how businesses should act responsibly towards various interest groups including shareholders, employees, consumers, and the community. It also explores the importance of environmental protection and how ethical conduct enhances business reputation and success.
Key Topics
- •Social responsibility of business
- •Types of social responsibility
- •Arguments for and against social responsibility
- •Business ethics
- •Corporate social responsibility under Companies Act 2013
- •Environmental protection and pollution control
- •Ethical business practices
Learning Objectives
- ✓Explain the concept of social responsibility and its importance.
- ✓Discuss the different roles of business towards various stakeholders.
- ✓Analyze the relationship between business operations and environmental protection.
- ✓Define business ethics and identify its elements.
- ✓Understand the legal framework for corporate social responsibility in India.
Questions in Chapter
What do you understand by social responsibility of business? How is it different from legal responsibility?
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What is environment? What is environmental pollution?
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What is business ethics? Mention the basic elements of business ethics.
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Briefly explain (a) Air Pollution, (b) Water pollution, and (c) Land pollution.
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What are the major areas of social responsibility of business?
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State the meaning of Corporate Social Responsibility as per the Companies Act 2013.
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Build up arguments for and against social responsibilities.
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Discuss the forces which are responsible for increasing concern of business enterprises toward social responsibility.
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‘Business is essentially a social institution and not merely a profit making activity’. Explain.
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Why do the enterprises need to adopt pollution control measures?
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What steps can an enterprise take to protect the environment from the dangers of pollution?
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Explain the various elements of business ethics.
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Discuss the guidelines enumerated by the Companies Act 2013 for Corporate Social Responsibility.
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Additional Practice Questions
Define economic responsibility and give an example.
easyAnswer: Economic responsibility refers to the expectation that businesses produce goods and services that society desires and sell them at a profit. An example is a company investing in technology that reduces production costs while maintaining product quality.
Explain the role of top management in fostering business ethics within an organization.
mediumAnswer: Top management's role is crucial in fostering business ethics as they set the tone for ethical conduct within the organization. This includes creating and enforcing a code of ethics, leading by example, and implementing compliance mechanisms to uphold ethical standards.
How can a business balance its profit motives with its social responsibilities?
mediumAnswer: A business can balance profit motives with social responsibilities by integrating ethical practices into its business model, such as using sustainable materials, ensuring fair labor practices, and engaging in transparent communication with stakeholders. This approach can enhance long-term profitability through brand loyalty and customer trust.
Discuss how consumer consciousness impacts business strategies.
mediumAnswer: As consumers become more aware of their rights and demand higher ethical standards from businesses, companies must adapt by ensuring product quality, transparency, and sustainable practices. Businesses may employ customer-focused strategies like ethical marketing and csr programs to build trust and competitive advantage.
What measures can businesses take to reduce air pollution?
hardAnswer: Businesses can reduce air pollution by adopting cleaner production methods, using energy-efficient technologies, and reducing emissions through pollution control devices. Regular monitoring and compliance with environmental regulations also play a key role in minimizing air pollution.