CHAPTER 6
SOCIAL RESPONSIBILITIES OF BUSINESS AND BUSINESS ETHICS
Main objective of business is to earn money (profit), it also have certain obligations towards society.
Social responsibility of business refers to its obligation to take those decision and perform those of the objective and values of our society.
Arguments for Social Responsibility:
(i) Justification for existence and growth.
(ii) Long-term interest of the firm.
(iii) Avoidance of government regulation.
(iv) Maintenance of society.
(v) Availability of resources with business.
(vi) Converting problems into opportunities.
(vii) Better environment for doing business.
(viii) Holding business responsible for social problems.
Arguments against Social Responsibility :
(i) Violation of profit maximisation objective.
(ii) Burden on consumers.
(iii) Lack of social skills.
(iv) Lack of broad public support.
Q. Business has to perform its social responsibility towards different group of society. Name them.
Social responsibility of business:
1. Consumer.
2. Employee/worker.
3. Government.
4. Community.
5. Suppliers.
SOCIAL RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS:
(1) Social Responsibility towards the consumers:
i) Produce Quality and standard product (safe product).
ii) Truthful in advertisement (no cheating).
iii) It should be at reasonable price.
iv) Black marketing not indulged in unfair trade activities.
(2) Social Responsibility towards the Employee/workers:
i) Payment of wages and salaries on time.
ii) Provides safe working condition.
iii) Providing scope for development of employees.
(3) Social Responsibility towards the government:
i) Must pay taxes regularly and honesty.
ii) To follow rule and regularly fright by government.
(4) Social Responsibility towards community:
i) Protect natural environment.
ii) provides employment opportunity.
iii) Help and take care of needy people.
(5) Social Responsibilities towards suppliers:
i) Payment to be made in proper time.
ii) Having good relation with supplies.
Q. Explain types of pollution?
Ans. Types of pollution:
a. Air
b. Water
c. Land
d. Noise
a) Air pollution:
Air pollution is the result of a combination of factors which lowers the air quality.
- It created a hole in the ozone layer leading to dangerous warming of the earth.
b) Water pollution:
Water becomes polluted primarily from chemical and waste dumping.
c) Land pollution:
Dumping of toxic wastes on land causes land pollution. This damages the quality of land making it unfit for agriculture or plantation.
d) Noise pollution: Noise caused by the running of factories and vehicles.It is also a serious health hazard.
Q. What are the cause of pollution?
Ans. It must be recognized that all sectors of our society viz., industry, government, agriculture, mining, energy, transportation, construction, and consumers generate waste.
- industry is a major generator of waste in terms of both its quantity and toxicity. Business activities such as production, distribution, transport, storage, consumption of goods and services are known to be the most critical sources of environmental pollution problems.
Q. What is the need for pollution control?
Ans. Pollution prevention or control is needed to preserve precious environmental resources and to improve the environmental quality so that the preserved resources can be utilized for the benefit of mankind and the improvement of health and well-being of the people.
Q. Explain the concept of business Ethics? What are its elements?
Ans. ‘Ethics’ means character; norms, ideals or morals prevailing in a group or society. Business ethics refer to the socially determined moral principles which should govern business activities.
Ex- Greeting fairly to the worker,
no cheating to the customers, etc.
Elements of Business Ethics
(i) Top management commitment:
Top management has a crucial role in guiding the entire organisation towards ethically upright behavior. It must give continuous leadership in the regard.
(ii) Publication of a ‘Code’:
“Code” must be published covering areas such as fundamental honesty and adherence to laws; product safety and quality; health and safety in the workplace, etc.
(iii) Establishment of compliance mechanisms:
Some examples of such mechanisms are: paying attention to values and ethics in recruiting and hiring; emphasizing corporate ethics in training, Instituting communication systems.
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SOCIAL RESPONSIBILITIES OF BUSINESS AND BUSINESS ETHICS
Main objective of business is to earn money (profit), it also have certain obligations towards society.
Social responsibility of business refers to its obligation to take those decision and perform those of the objective and values of our society.
Arguments for Social Responsibility:
(i) Justification for existence and growth.
(ii) Long-term interest of the firm.
(iii) Avoidance of government regulation.
(iv) Maintenance of society.
(v) Availability of resources with business.
(vi) Converting problems into opportunities.
(vii) Better environment for doing business.
(viii) Holding business responsible for social problems.
Arguments against Social Responsibility :
(i) Violation of profit maximisation objective.
(ii) Burden on consumers.
(iii) Lack of social skills.
(iv) Lack of broad public support.
Q. Business has to perform its social responsibility towards different group of society. Name them.
Social responsibility of business:
1. Consumer.
2. Employee/worker.
3. Government.
4. Community.
5. Suppliers.
SOCIAL RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS:
(1) Social Responsibility towards the consumers:
i) Produce Quality and standard product (safe product).
ii) Truthful in advertisement (no cheating).
iii) It should be at reasonable price.
iv) Black marketing not indulged in unfair trade activities.
(2) Social Responsibility towards the Employee/workers:
i) Payment of wages and salaries on time.
ii) Provides safe working condition.
iii) Providing scope for development of employees.
(3) Social Responsibility towards the government:
i) Must pay taxes regularly and honesty.
ii) To follow rule and regularly fright by government.
(4) Social Responsibility towards community:
i) Protect natural environment.
ii) provides employment opportunity.
iii) Help and take care of needy people.
(5) Social Responsibilities towards suppliers:
i) Payment to be made in proper time.
ii) Having good relation with supplies.
Q. Explain types of pollution?
Ans. Types of pollution:
a. Air
b. Water
c. Land
d. Noise
a) Air pollution:
Air pollution is the result of a combination of factors which lowers the air quality.
- It created a hole in the ozone layer leading to dangerous warming of the earth.
b) Water pollution:
Water becomes polluted primarily from chemical and waste dumping.
c) Land pollution:
Dumping of toxic wastes on land causes land pollution. This damages the quality of land making it unfit for agriculture or plantation.
d) Noise pollution: Noise caused by the running of factories and vehicles.It is also a serious health hazard.
Q. What are the cause of pollution?
Ans. It must be recognized that all sectors of our society viz., industry, government, agriculture, mining, energy, transportation, construction, and consumers generate waste.
- industry is a major generator of waste in terms of both its quantity and toxicity. Business activities such as production, distribution, transport, storage, consumption of goods and services are known to be the most critical sources of environmental pollution problems.
Q. What is the need for pollution control?
Ans. Pollution prevention or control is needed to preserve precious environmental resources and to improve the environmental quality so that the preserved resources can be utilized for the benefit of mankind and the improvement of health and well-being of the people.
Q. Explain the concept of business Ethics? What are its elements?
Ans. ‘Ethics’ means character; norms, ideals or morals prevailing in a group or society. Business ethics refer to the socially determined moral principles which should govern business activities.
Ex- Greeting fairly to the worker,
no cheating to the customers, etc.
Elements of Business Ethics
(i) Top management commitment:
Top management has a crucial role in guiding the entire organisation towards ethically upright behavior. It must give continuous leadership in the regard.
(ii) Publication of a ‘Code’:
“Code” must be published covering areas such as fundamental honesty and adherence to laws; product safety and quality; health and safety in the workplace, etc.
(iii) Establishment of compliance mechanisms:
Some examples of such mechanisms are: paying attention to values and ethics in recruiting and hiring; emphasizing corporate ethics in training, Instituting communication systems.
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