Social Responsibilities Of Business And Business Ethics - Class 11 Commerce Business Studies - Extra Questions

What do you mean by Air pollution?

Air pollution refers to injection of dangerous substances into the atmosphere which results in lowering the quality of air we breathe in. Air pollution is a serious problem for the entire world as it has created a hole in the ozone layer of atmosphere. Smoke, chemicals emitted by factories and smoke emitted by vehicles are the main causes of air pollution.


What do you mean by environmental pollution?

Environmental pollution means injection of harmful substances into the environment. The greatest problem that industries and businessmen are creating is that of pollution which is the result of industrial production. So protection of environment is a must.


What do you mean by social responsibility of business?

The concept of social responsibility as used in management science is that business should maximize their profits subject to their working in a socially responsible manner to promote the interest of society. Thus social responsibility relates to the voluntary efforts on the part of the businessmen to contribute to social well-being. 


Write short notes on the following.
Responsibilities of business organization towards government.

A business organization has the responsibilities towards government also. It should respect the laws of the country and pay taxes honestly and regularly. It must also protect the environment and not cause pollution by chimneys or inappropriate disposal of the waste. It should also develop a good image in the society.


Write a word/ Phase /term which can substitute the following statements:
Duties, obligations of business directed towards welfare of the society

Social responsibility of business refers to the duties and obligations of business towards welfare of the society. Business uses resources of society. Therefore, it becomes duty of the business to contribute towards welfare of the society. This is known as social responsibility of the business.  


What are the responsibilities of business towards workers?

The following are the business responsibilities towards workers:-
1) Providing fair compensation and benefits.
2) Providing good and safe working conditions.
3) To develop a sense of belongingness. 


What is the need of social responsibility?

For the business to exist and grow, it must take on social responsibilities
1) Justification for existence and growth - Business is the creation of society therefore it should respond according to the demands of the society. To survive and grow in society in long run the business must provide continuous services to society.
2) Avoidance of government regulations - Businesses can avoid the problem of government regulations by voluntarily assuming social responsibilities.
3) Better environment for doing business - It is the social responsibility of the business enterprises to provide a better quality of life and standard of living to people. So, businesses will get a better community to conduct business.


Write short note on the following:
Social responsibilities of business organisation towards government.

The social responsibilities of a business organization towards government can be explained with the help of the following points:-
1. Observation of Rules and Regulation: The organization are required to follow the rules and regulations laid by the government in proper manner.
2. Payment of Taxes: The business organizations must pay taxes and duties regularly to the government such as sales tax, income tax, octroi duty, custom duty, VAT, etc. Non payment of taxes is an offense, because it would be difficult for the government to undertake development programs.
3. Assistance in Implementing Socio-Economic Policies: The government expects co-operation and help from the business sector to help in implementing programs and policies relating to social and economic development.
4. Earning Foreign Exchange: The government also expects from business organization that it will earn foreign currency by exporting goods in the foreign market. 
5. Political Stability: The commercial organizations should work towards the political stability of the country. The stable government often brings more return and peace in a democratic country.


Answer the following question:
State the social responsibilities of a business towards consumers.

Responsibilities towards Consumers:

1.  Good Quality Products: -A business enterprise should provide higher quality of goods and services. Every organization should have its quality control department so that inferior and substandard products can be rejected. International Standard Organization, ISO is the latest trend towards quality control.

2.  Consumer Safety: -While manufacturing the products, health and safety of consumers should be the prime factor. Unsafe products should not be marketed. Consumers should be warned of any unsafe good. Some rival (competitor) organizations may introduce imitation articles of interior quality, in such circumstances the producer of genuine product must alter consumer.

3. Changing Fair Prices: -The products and services should be available to consumers at fair prices. They should not be cheated by changing unreasonable prices. Such practice will spoil the image of organization in long run. Maximum Retail Price (M.R.P) Inclusive All Taxes should be printed on every packed product. Retailer should not charge any extra amount.

4. Services Regarding Products: -Organization should consider following services to customers about the goods or products.
·         Regular supply of goods at the right price and right place.
·         Provide sufficient quantity and quality of goods as per demands.
·         A large variety of products should be provided to consumers.
·         The goods must meet the needs of consumers of different classes, taste, purchasing power etc.

5. Research and Development: -The organization should adopt new methods and techniques of production and distribution. They should conduct research and development to improve the quality of goods and to reduce cost of production. It will minimize final prices charged to customers.

6. Accurate Information: -Accurate information of product should be provided to consumers through advertising, packing and labeling. Such information include contents of product, their uses, ways of maintaining products, side effects, date of manufacturing and expiry, MRP, etc. printed leaflet may be provided to take proper precautions.

7. Customer Service Cell: -An organization must attend all complaints of customers without any delay. Quick and effective service regarding grievance should be provided. Suggestions of customers should be welcomed and required modifications should be considered.

8.   Advertising Ethics: -Advertisement of products should convey facts of products, its uses merits, demerits etc. False, misleading and vulgar advertisement should be avoided. Only honest advertising can be appreciated by consumers in the long run.

9.  Avoid Consumer Exploitation: -Business should avoid unfair trade practices which lead to exploitation of consumers. They should not take undue advantage of certain situations and create artificial scarcity of goods.

10.    Miscellaneous: -
·         Supplying goods in pure form.
·         Supply of spare parts.
·         Fulfilling guarantees and warrantees.
·         Provide consumer oriented production.


What are the responsibilities of business towards shareholders?

The following are the business responsibilities to shareholders: 
1) To ensure a fair and regular return on the investment of shareholders.
2) To ensure the safety of their investment.
3) To strengthen the financial position of the company.
4) To safeguard the assets of the business.
5) To protect the interest of all types of investors in the business.


Attempt the following question:
State the social responsibilities of business organization towards government.

The social responsibilities of a business organization towards government can be explained with the help of the following points:-

(1) Observation of Rules and Regulation: The organization are required to follow the rules and regulations laid by the government in proper manner.

(2) Payment of Taxes:The business organizations must pay taxes and duties regularly to the government such as sales tax, income tax, octroi duty, custom duty, VAT, etc. Non payment of taxes is an offense, because it would be difficult for the government to undertake development programs.

(3) Assistance in Implementing Socio-Economic Policies: The government expects co-operation and help from the business sector to help in implementing programs and policies relating to social and economic development.

(4) Earning Foreign Exchange: The government also expects from business organization that it will earn foreign currency by exporting goods in the foreign market. The government requires this foreign currency for importing valuable and important products.

(5) Advising the Government: The business organization has to provide timely advice to the government in respect of framing important policies such as Industrial policy, Import & Export policy, Licensing policy, etc.

(6) No Favors: The commercial organization should not take any type of favor from government officials by bribing or influencing them.

(7) Contributing to Government Treasury: The commercial organization must contribute the funds to government during the emergencies and natural calamities like floods, earthquakes, etc.

(8) Political Stability: The commercial organizations should work towards the political stability of the country. The stable government often brings more return and peace in a democratic country.


What are the responsibilities of business towards community?

The following are the business responsibilities towards the community:-
1) To make available opportunities for employment.
2) To avoid polluting the environment.
3) To uplift the weaker sections of society.


What are the responsibilities of business towards consumers?

The following are the business responsibilities towards consumers:-
1) To supply the right quality of goods and services at reasonable prices.
2) To ensure a regular and adequate supply of products.
3) To inform them about new products and new uses of existing products.
4) To handle the customer's grievance promptly.


What are the need for pollution control?

The following is the need for pollution control:
1) To ensure healthy life:-Many diseases like cancer, heart attack, and lung complication are all caused by pollutants in the environment. Pollution control is a must to keep a check on these diseases.
2) To ensure safety:- Due to environmental pollution and smoke the visibility is reducing due to which chances of accidents have been increasing. To reduce the number of accidents there must be a check on pollution.
3) Economic losses:- Pollutants in the environment bringing heavy economic losses for the country. For example, the Taj Mahal is losing its beauty due to pollution.
4) Improved public image: A firm that adopts pollution control measures enjoys a good reputation as a socially responsible enterprise.


Describe the duties of business for environmental protection.

The following are the duties of a business for protecting the environment:
1. Eco-friendly and clean or low waste technology should be used by industrial organizations.
2.Industrial waste should be recycled as far as possible.
3. Plant and machinery should be modernized to minimize pollution.
4. The business houses should comply with the laws and regulations enacted for the prevention of pollution.
5. Positive steps should be taken to save the environment. These include plantation of trees, cleaning of rivers, ponds, etc


What do you mean by noise pollution?

Noise pollution is caused by running factories and vehicles. Noise pollution can be responsible for many diseases like loss of hearing, violent behavior, and mental disorder.


What do you mean by land pollution?

Land pollution refers to dumping of toxic waste in the land which affects the fertility of the land and makes it unfit for agriculture. There are two aspects of land pollution. One is how to improve the quality of land which is already damaged and second is how to check further contamination of land. In order to check land pollution, method of solid waste disposal are used. The combustible wastes are now separated and are used as fuel in industrial boilers etc.


What do you mean by water pollution?

Water pollution refers to the dumping of chemicals and other wastes in rivers, lakes etc. Generally, the factories located near the rivers, streams dump their waste into rivers, lakes streams etc. thereby causing pollution of water.


What do you mean by environment?

The environment is defined as the totality of man's surroundings both natural and man-made. Natural resources- land, water, air, and man-made - Cultural heritage, socio-economic institutions, and the people.


What are the elements of business ethics?

The following are elements of business ethics:-
  1. Top management commitment: The CEO and higher-level managers must be committed to ethical norms of behavior. This would set an example for all employers and encourage them to follow ethical practices.
  2. Publication of code:- Code of ethics is a formal written document of the principles, values, and standards that guide a firm's actions. It may cover areas like honesty, quality, safety, health care etc
  3. Employee involvement:- It is the employees of the lower levels who implement ethical principal so they must be involved in the process of developing ethical codes.


What do you mean by business ethics?

Business ethics refers to the moral values or standards or norms which govern the activities of a businessman. Ethics define what is right and what is wrong. By ethics, we mean the business practices which are desirable from the point of view of society.


Class 11 Commerce Business Studies Extra Questions