Here we are providing Business Studies Class 11 Important Extra Questions and Answers Chapter 6 Social Responsibilities of Business and Business Ethics. Business Studies Class 11 Important Questions with Answers are the best resource for students which helps in class 11 board exams.
Class 11 Business Studies Chapter 6 Important Extra Questions Social Responsibilities of Business and Business Ethics
Social Responsibilities of Business and Business Ethics Important Extra Questions Short Answer Type
Explain in brief the concept of social responsibility of business.
Concept of Social Responsibility:
Meaning and Rationale: Business in today’s world is recognized and accepted as a social and economic activity of society. The business is carried on within the societal norms in order to satisfy the needs of the society. All the factors of production i.e. Men, machines, materials, money, and equipment are supplied by the society to the business as such business owes its existence to the society.
The society originates, sustains, and manages to conduct its affairs in the. the interest of society. In other words, social responsibility is the obligation of the business towards different groups of society; in addition to its profit earning.
- “Social responsibility is the personal obligation of everyone, as he acts for his owner’s interests to assure that right and legitimate interests of all others do not impinge.”-Knootz O’Donnel
- “In the real sense, the assumption of social responsibilities implies recognition and understanding of the aspiration of society and determination to contribute to its achievement”-George A. Steiner
The business has its obligation to pay a reasonable return to its owners, to pay interest at competitive rates to investors, to pay reasonable remuneration to employees, supply goods to customers at reasonable rates, and to conduct the affairs of the business in accordance with social commitment and values.
“Customers are the foundation of the business.” Explain the statement in the light of the social consciousness of consumers.
Peter F. Drucker, the management Guru, rightly states that the customers are the foundation stone of any business. The ultimate objective of any business to gain maximum profit can only be achieved by providing the right goods and services to consumers and try to provide maximum satisfaction to consumers. In the opinion of Butler, “The customers hold a topmost place in the organization hierarchy.
It is, therefore, necessary that businesses should avoid adulteration, substandard product, defective measurement or weights, deceptive and advertisements, and omission from services and courtesy. Business premises is for customers not the customers for the business.
The business has the following obligation towards customers:
1. Need-based production: Business should produce only those goods which satisfy the expectation and aspirations of the customers.
2. Supplying goods at a reasonable price: Every business aims at producing goods at the minimum cost. It should supply goods to customers at a reasonable price. The price of the commodity must be reasonable and competitive.
3. Appropriate distribution: The producers and manufacturers should make their goods and services at the appropriate places and times, so that customers may not face more difficulties in acquiring them. The increase in the number of middlemen will increase the price. The channels of distribution must be sufficient to maintain the smooth supply of goods to customers. The importance of customers in business must be recognized and accepted by every firm.
Discuss the responsibilities of business towards employees or workers.
Workers are the major force in any organization. They do not only work as a factor of production but also helps in working the other factors. It is rightly said that the owner of a business simply invests capital in the business, but employees/workers invested their entire life for the benefit of the organization. Therefore, it is the prime duty of the business to fulfill its humane, social, and business obligations.
The responsibility of business towards employees or workers may be discussed as under:
1. Fair wages: it is the social, moral humane, and business responsibility of every firm to pay a reasonable amount of wages to employees in order to live a respectable life in society.
2. Security of the job: Workers must feel part and parcel of the organization and treat themselves as a permanent assist in the business. He should contribute his best without fear of being removed and retrenched.
3. Creating a congenial atmosphere of work- Working conditions must be congenial to work. The place of work should be clean, properly ventilated, and free from dirt and suffocation. There should be proper arrangement of safety measures to avoid accidents.
4. Scientific selection and training of workers: The selection and appointment of workers should be based on testing. Employees should be selected strictly as per the requirements of the works. In other words, the right workers should be appointed for the right jobs.
Late Prime Minister Pandit Jawahar Lai Nehru rightly conclude that
“In the present economic and industrial structure, the relationship between workers and customers should not be that of owner and workers but workers should be treated as partner and colleague and in this vim; there can be the peaceful solution of all the economic problems.”
Explain the concept of ‘Human Rights’. Also mention cases for Human Rights.
Concept of Human Rights: Human rights provide equality to individuals in their interests. Human rights basically meant to provide a basis for justifying one’s action and provide protection and assistance. Human rights lay stress on the concept of humanity. All big business organizations should follow and promote human rights.
Cases for Human Rights- Human rights have received high priority in our society’. In order to get these rights, many movements have also appeared.
The following statements may be mentioned in favor of human rights in general, in society’ and in particular in business.
1. Protection against Human Injustice- Businessmen generally do not protect government patterns and establish their own social and economic parameters. Human rights come to light when people think that injustice being perpetuated.
2. Provides Benchmarks for Law Land Policies: After independence, certain basic rights became natural which do not act under any law or policy. These rights take precedence over the particular laws and standards created by society.
3. Respecting the Human Values: Some human rights are taken as basic rights. These rights are the overriding significance of human rights over others, human rights, and legal rights and provide entitlements beyond legal jurisdiction should be respected by others.
There is a great difference between human and legal rights. One may have a legal right to do something inhumane but for doing any work of humanity there is no need to have legal rights. Legal rights are derived from the constitution and policies while human rights derived independently. Human rights are based on human norms. Entitlement of human rights can derive from a system of human standards independently of any particular legal system. These rights prohibit todo something inhumane.
United Nation declares the following as Human Rights:
- The right to work, free choice of employment, good working conditions, right of protection against unemployment.
- Right of just or favorable remuneration.
- Right to form and join trade unions.
- Reasonable limitation of working hours and periodic holidays with pay.
Outline the major Environmental Pollution Control Activities,
Major Environmental Pollution Control Activities:
- National conservation strategy in 1992, policy statement for environment and development, Policy statement for abatement of pollution 1992, National Forest Policy 1988, and in 1986. Environment (Protection) Act was initiated for pollution control.
- Standards related to air, water, and noise levels were formulated by a multi-disciplinary group keeping in view the international standards, technologies, and impact on health and the environment.
- Action plans and identification of 17 categories of major polluting industries.
- Identification of 24 major polluted areas for pollution control.
- Factories were asked to use coal wherein % of smoke will not be more than 34%.
- Action plans for 141 polluted rivers started.
- In order to reduce the pollution from automobiles, cleaner fuels, low sulfur diesel, and compressed natural gas (CNG) should be used at the manufacturing stage.
- Starting of clean technologies for big industries.
- FortheclustersofSSI units ‘Common Effluent Plants’ was set up.
- The echo mark scheme started to increase the production/consumption of Environment-friendly products.
- A zoning atlas was prepared to get environmental informational district level.
- Environmental epidemiological studies were initiated in seven critically polluted areas to study the impact of the environment on health.
- Financial assistance to initiate pollution control environments and to shift industries in the outer places.
- Environment Pollution (Prevention & control) authority was established.
- Prohibition of smoking in public places and use of polythene bags.
What are the various factors influencing business ethics?
Factors Influencing Business Ethics: The main determinants of business ethics are as follows:
1. Social values- Social forces and pressures exercise considerable influence on business ethics. Often, different groups in society compel businessmen to discontinue unethical practices. Morality, behavior, beliefs emerge from social values, social forces exercise influence on business to observe ethics in business.
2. Legislation: Laws are generally passed to keep a check on unethical practices. They are their use of social pressures. When society considers a practice unethical, it may exercise its influence to get that practice declared illegal. For example, the Monopolies and Restrictive Trade Practices Act has made monopolistic trade practices illegal in India. Prevention of Food Adulteration Act 1976, Drugs and Cosmetics Act 1946, Prevention of Black-marketing and Maintenance of Supply of Essential Commodities Act 1980 has to enact to keep a check on malpractices of business.
3. Government rules and regulations: Government regulations provide guidelines for acceptable practices. For example, the government has made it compulsory for tobacco companies to give the statutory warning “smoking is injurious to health” in the advertisements for cigarettes.
4. Industry norms: In some industries and trades, specific codes of conduct have been laid down. In addition, many organizations have laid down guidelines for regulating the behavior of their employees. Most industries have an ethical climate that governs the code of conduct of the employees. An individual working in the enterprises to observe the code of conduct of the enterprise, and norms established in the industry.
5. Personal Yahies-The personal beliefs of the individuals working in an organization also influence business ethics. However, sometimes there is a conflict between personal moral values and company goals. Generally, employees look to their superiors and tend to adopt their values and actions. The behavior of competitors and associates also influences business ethics. An honest businessman must-keep their personal interest subordinate to die interest of society.
6. Professionafisation: Professional managers normally tend to have higher ethical standards than family managers. Therefore, the growing professionalization of management has exercised a healthy influence on ethics in business. These days professionalism of management has been generating more ethics in the business.
Write short notes on CSR?
It is the responsibility of every form of business enterprise to act in a socially desirable manner. But the concept of CSR is corporate social responsibility used particularly with reference to a company. It may be defined as achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. It means addressing the legal, ethical, commercial, and other expectations that society has from corporate who should take decisions and actions that fairly balance the claims of stake-holders. CSR is viewed as a comprehensive set of policies, practices, and programs that are integrated into business operations, supply claims, and decision-making processes throughout the company.
List the environmental problems that cause damage to the natural environment?
The United Nations has identified eight problems that cause damage to the natural environment.
- Ozone depletion
- Global warning
- Solid and hazardous wastes
- Water pollution
- Freshwater quality and quantity
- Land degradation
- Danger to biological diversity.
Define Corporate Governance?
It is originated intheUnitedKingdomforthepurposeofimproved accountable to directors to shareholders, with emphasis on more transparent auditing and increased responsibilities of independent directors and division of roles of chairman and managing directors for safeguarding the interest of the shareholders.
What are the main ground rules of ethics?
The following are some rules which all human beings should follow in life.
- Be trustworthy
- Have respect for other
- Own responsibility
- Be fair in dealing
- Be caring towards well being of others.
- Prove to be a good citizen
Write the effects of pollution?
Pollution: The injection of harmful substances into the environment is called pollution. It changes the physical, chemical, and biological characteristics of air, land, and water. Pollution harms human life and the life of other species. It also degrades living conditions while wasting or depleting raw material resources. It also damages our historical monuments. It causes risks to the environment, human health and damage to natural and man-made resources.
Give some examples of Business ethics.
- Giving enough dividends to the shareholder on their investment.
- Making goods available of good quality and quantity at a reasonable price.
- Making timely payments to the suppliers.
- Having healthy competition with the competitors.
- Observing the government laws and helping the government by paying taxes in time.
- Making employment to the society.
- Saving the environment from getting polluted.
“The concept of social responsibility is ultimately in the interest of business community itself.” Do you agree? Explain.
“The concept of social responsibility is ultimately in the interest of the business community itself. I agree with this statement because business is an organ of society and it operates in a socio-economic environment. It can justify its existence by fulfilling its obligations to society. No doubt business is an economic institution and it cannot survive without economic performance. But economic results depend upon the goodwill and support of the society’. Business gains support only when it assumes its social responsibilities.