Ch 6Social Responsibilities of Business and Business Ethics — Class 11 Business Studies, concept-first.

A story that sets the stage - Mani, a young newspaper reporter, had spent almost six months writing about malpractices by business enterprises — misleading advertisements, adulterated products, poor w…

What social responsibility means: The social responsibility of business is its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of…

This section opens the central question: what is the right thing for a business to do? Should a firm be run purely for the benefit of its owners, who may want the maximum possible profit — or is it re…

The case in favour of business assuming social responsibility rests on eight arguments:

The case against business assuming social responsibility rests on four major arguments:

Given the arguments both for and against, what do businesses actually do in reality — concentrate on profit maximisation, or support social goals?

The social responsibility of a business can be broadly divided into four categories:

Once the social objective of business is accepted, the next questions are: to whom, and for what, are the business and its management responsible, and in which areas should it pursue social goals? A b…

Responsibility towards the shareholders or owners: - A business enterprise must provide a fair return to its shareholders or owners on the capital they have invested.

Responsibility towards the workers: - The management is responsible for giving workers the opportunity to do meaningful work.

Responsibility towards the consumers: - The enterprise must supply the right quality and quantity of goods and services at reasonable prices.

Responsibility towards the government and community: - The enterprise must respect the laws of the country and pay its taxes regularly and honestly.

Protecting the environment is a serious issue facing business managers and decision-makers.

Where pollution comes from: Waste is generated by all sectors of society — industry, government, agriculture, mining, energy, transportation, construction, and consumers.

Why pollution control is needed: Pollution prevention or control is needed to preserve precious environmental resources and improve environmental quality, so that these resources can be used for the b…

A shared responsibility, with business in the lead: Because environmental quality matters to everyone, protecting it is a collective responsibility.

Why ethics enters the picture: From society's point of view, business exists to supply goods and services to people; from the individual firm's point of view, its primary objective is to earn profit.

Origin and meaning of 'ethics': The word 'ethics' comes from the Greek word for character — the norms, ideals or morals prevailing in a group or society.

Because ethical business behaviour benefits both the enterprise and society, it is worth knowing how enterprises can foster ethics in their day-to-day working.

- Social responsibility — a business's obligation to take decisions and actions desirable in terms of the objectives and values of society, beyond mere legal compliance.

- Concept of social responsibility: The obligation of a business to take decisions and perform actions that are desirable in terms of society's objectives and values — broader than mere legal complian…