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Q.‘Bonfast Cement Ltd.’ supports 7 villages with housing facilities, schools, safe drinking water, health and hygiene. The company sends its employees to visit a nearby village every 15 days to provide support and to see whether the facilities provided are being implemented on ground. The objective which ‘Bonfast Cement Ltd.’ is trying to achieve is : (A) Personal objective (B) Social objective (C) Organizational objective (D) Economic objective

CBSECBSE Class XII Board 2024MCQ· 1mImportance★★★★★
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Bonfast Cement Ltd.'s activities of supporting villages with essential facilities are aimed at contributing to societal well-being, which falls under its Social objective.

Every organization operates with certain goals in mind, which are broadly categorized into different types. Understanding these categories helps us analyze the purpose behind a company's actions. In this scenario, Bonfast Cement Ltd. is engaging in activities that directly benefit the community outside its immediate business operations.

Let's look at the common types of objectives:

  • Organizational Objectives: These are the primary goals of the business itself, focusing on its survival, profitability, and growth. Examples include maximizing sales, increasing market share, or achieving a certain return on investment.
  • Social Objectives: These relate to the company's responsibility towards society. They involve contributing to the welfare of the community, protecting the environment, providing quality products at fair prices, and generating employment. These objectives reflect the company's role as a responsible corporate citizen.
  • Personal Objectives (or Individual Objectives): These pertain to the goals of the employees within the organization. They include fair remuneration, good working conditions, opportunities for training and development, and recognition for their contributions.
  • Economic Objectives: While often intertwined with organizational objectives, economic objectives specifically focus on the financial aspects of the business, such as profit maximization, efficient resource utilization, and cost reduction. In the context of broader objective types, 'social' stands distinct from these internal, profit-driven goals.

Now, let's apply this understanding to the given situation.

  1. Analyze Bonfast Cement Ltd.'s actions: The company is actively supporting 7 villages by providing housing facilities, schools, safe drinking water, and health and hygiene initiatives. They also send employees to visit regularly to ensure these facilities are being implemented effectively.
  2. Identify the beneficiaries: The direct beneficiaries of these actions are the villagers and the community at large, not primarily the company's shareholders or employees in terms of direct financial gain or personal development.
  3. Match actions to objective types:
    • These actions are clearly not about maximizing the company's profit or market share (Organizational/Economic objectives). While such activities might indirectly enhance brand image, their direct intent is community welfare.
    • They are not about the well-being or development of Bonfast Cement's employees (Personal objectives).
    • The provision of essential services like housing, education, water, and health directly contributes to the welfare and upliftment of society. This aligns perfectly with the definition of a Social objective. Companies undertake social objectives as part of their corporate social responsibility (CSR).
Watch out

Do not confuse social objectives with organizational objectives. While a strong social image can indirectly benefit an organization's long-term growth, the primary intent of providing community support is societal welfare, making it a social objective. Organizational objectives are typically focused on the internal health and growth of the business itself.

Tip

When evaluating such scenarios, ask yourself: "Who primarily benefits from this action, and what is the core intent?" If the primary benefit is for the community or environment, it's a social objective. If it's for the company's survival, profit, or growth, it's an organizational/economic objective. If it's for the employees, it's a personal objective.

The company's efforts to provide basic amenities and support to the villages demonstrate a commitment to societal well-being, which is a hallmark of a social objective.

✓Final answer

The objective which ‘Bonfast Cement Ltd.’ is trying to achieve is (B) Social objective.

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