Q.State whether the following statement is true or false:
It is the responsibility of commercial organisation to maintain industrial peace.

Among a firm's interest groups, it is the owners (shareholders) who must be supplied with periodic information about the company's performance and financial position.

Every business has responsibilities towards several interest groups — owners, employees, customers, government, and society. Each group is owed different obligations:

• Owners / shareholders — they have invested their capital and bear the risk, so they are entitled to a fair return and, importantly, to regular and true information about the progress and financial soundness of the business. This is normally given through periodic financial statements, annual reports and disclosures.
• Customers — owed good-quality goods at fair prices, honest information and after-sales service.
• Employees — owed fair wages, safe working conditions and job security. …

The statement is True. Maintaining industrial peace is part of a business's social responsibility towards its employees and towards society.

A commercial organisation has responsibilities towards its employees, and maintaining industrial peace is an important one:

• Industrial peace means harmonious relations between the employer and the workers, free from strikes, lock-outs and continual disputes.
• The business can maintain it by paying fair wages, providing good working conditions, settling grievances promptly, and encouraging healthy communication with workers and their unions.
• Industrial peace ensures uninterrupted production, better productivity, employee loyalty and a good reputation for the organisation. …

Social responsibility towards consumers means supplying goods at a reasonable price, so the answer is (c).

One of the responsibilities of business towards its interest groups is its duty to consumers/customers. This includes providing good quality products, correct information and, importantly, charging a fair, reasonable price rather than exploiting buyers.

• Charging a high price (a) would exploit consumers — against social responsibility. …

The correct option is Political stability, which is the foundation for both economic growth and national security.

Business is a part of society and depends heavily on the environment created by the government. One of the responsibilities of the government (as an interest group) is to maintain a stable political system, and in turn business supports the nation.

Political stability means a steady, orderly government with continuity in policies, laws and administration. When the political system is stable, there is certainty in economic policy, protection of law and order, safety of property and confidence among investors. This encourages businesses to invest, expand and take long-term decisions, which drives economic growth; it also strengthens national security beca …

The odd one out is Reasonable profit.

A business has social responsibilities towards various interest groups — owners, employees, consumers, government and the community.

Among the given options, Job security, Health and safety measures and Good working conditions are all responsibilities of a business towards its employees (workers), aimed at their welfare, security and dignity at the workplace.

…

Timely and honest payment of taxes is a business's responsibility towards the Government.

Every business organisation has social responsibilities towards different groups — owners/shareholders, employees, consumers, government and society.

Responsibilities towards the Government include:

• Paying proper taxes honestly and on time (income tax, GST, etc.).
• Following all laws, rules and regulations of the land.
• Not indulging in corruption, tax evasion or illegal activities.
• Cooperating with the government in its development programmes. …

The correct answer is (d) Timely training and development. That is a duty owed to employees, not to suppliers.

In the Tamil Nadu HSC Commerce syllabus, a business has responsibilities towards different interest groups. Towards suppliers, the responsibilities include:

• Dealing on fair terms and conditions.
• Availing a reasonable credit period and not exploiting the supplier.
• Timely payment of dues so suppliers are not put to hardship. …