Important Questions
Multiple Choice Questions-
Q.1 Responsibility towards the government is _________
(a) Safety of investments provided by shareholders
(b) Pay taxes regularly and honestly
(c) Supply of goods at a reasonable price to consumers
(d) None of the above
Q.2 A business enterprise has the responsibility to provide a fair return to the ______
(a) Shareholders
(b) Customers
(c) State Government
(d) None of the above
Q.3. Why business ethics are important?
(a) It formulates the firm’s image and builds the brand
(b) It influences the buying decision of the customers
(c) Build confidence within employees
(d) All of the above
Q.4. Ethics is important for
(a) Non-managerial employees
(b) Middle-level managers
(c) Top management
(d) All of the above
Q.5. Business people have the skill to involve
(a) Some social problems
(b) All economic problems
(c) No social problems
(d) All social problems
Q.6. The word ‘Ethics’ has its origin in the ______
(a) Greek Word
(b) British Word
(c) Indian Word
(d) Latin Word
Q.7. The need for social responsibility arises due to the ______
(a) Firm’s interest
(b) Interest of society
(c) Both firm’s and society interest
(d) None of the above
Q.8. Social responsibility is
(a) Broader than legal responsibility
(b) Same as a legal responsibility
(c) Narrower than legal responsibility
(d) None of the above
Q.9. ADRs are issued in
(a) USA
(b) China
(c) India
(d) Canada
Q.10. Running of factories and vehicles cause _________
(a) Land pollution
(b) Water Pollution
(c) Noise Pollution
(d) None of the above
Q.11. Funds required for purchasing current assets are known as
(a) Working capital
(b) Fixed capital
(c) Lease financing
(d) Retained earnings
Q.12. It includes the behavior of the firm expected by the society but not codified by law.
Identify the category of social responsibility referred to here.
(a) Economic Responsibility
(b) Ethical Responsibility
(c) Legal Responsibility
(d) All of the above
Q.13. Which of the following institution provides financial assistance towards balanced
regional development and development of management education in the country?
(a) Industrial development bank of India (IDBI)
(b) Industrial Finance Corporation of India (IFCI)
(c) Life insurance Corporation of India (LIC)
(d) Industrial Credit and Investment Corporation of India (ICICI)
Q.14. Providing charitable contributions to educational institutions is ________
(a) Legal responsibility
(b) Economic responsibility
(c) Discretionary responsibility
(d) None of the above
Q.15. Every business has a responsibility to operate within the laws of the land as per the ______
(a) Legal responsibility
(b) Financial responsibility
(c) Economic responsibility
(d) None of the above
Very Short Questions –
Q.1 Explain the social responsibility of business.
Q.2 Give two examples of business ethics.
Q.3 Give two examples of noise pollution
Q.4 Define environment pollution.
Q.5 How does an organization have a social responsibility towards owners’ and shareholders’?
Q.6 Define discretionary responsibility.
Q.7 State three responsibilities of a company towards its employees.
Q.8 State why business ethics are important?
Q.9 Explain why social responsibility is highlighted?
Q.10 Mention one need for social responsibility.
Short Questions –
Q.1. Explain the concept of ‘Human Rights’. Also mention cases for Human Rights.
Q.2. Outline the major Environmental Pollution Control Activities,
Q.3. What are the various factors influencing business ethics?
Q.4. Write short notes on CSR?
Q.5. List the environmental problems that cause damage to the natural environment?
Q.6. Define Corporate Governance?
Q.7. What are the main ground rules of ethics?
Q.8. Write the effects of pollution?
Q.9. Give some examples of Business ethics.
Q.10. “The concept of social responsibility is ultimately in the interest of business community itself.” Do you agree? Explain.
Long Questions –
1. Explain the forces which are responsible for increasing concern of business enterprises towards social responsibility.
2. It is in the interest of business to fulfill its social responsibilities towards different interest groups. Explain?
3. MNO Ltd., A renowned computer company follows the vision of "reaching new heights with its people on its side"', It not
only provides quality products but also provides various facilities to its employees for 5 years of service. It also provides
computer skills to youth in remote areas for free.
(a) What according to you are the business ethics of the company?
(b) Is it fulfilling its social responsibilities towards which interest groups?
4. There is a group discussion taking place in class XI regarding social responsibility of business' Ravi feels that a business
should be socially responsible towards the society it exists in while shama is against it as the basic objective of a business is
to earn projects. Whom do you think you will favour? Write points with respect to your opinion.
5. State the factors against social responsibility?
6. Describe the role of social responsibility in today's era?
7. What is the need to control pollution and how should businesses contribute to environmental protection?
Case Study Questions –
1. Read the following text and answer the questions that follow:
Karigar Furniture Ltd., a company manufacturing and trading furniture, was started by Saransh with five of his friends under
Start Up India Program. It provides a diverse collection of wooden, plastic, cane, bamboo, and steel furniture at reasonable
rates to the customers. They import raw-material from China for the same abiding by the government policy and procedures for
imports. The company is earning good profits and donating 5% of profits earned for plantation of trees on highway roadside. The
company organises training and skill development programme for its workers. The efficient planning and marketing strategy of the
company has offered the owners of the company reasonable appreciation of capital employed.
(i) Providing furniture at the reasonable rates is an example of social responsibility towards which of the following?
a) Consumers
b) Community
c) Creditors
d) Owners
(ii) “The company organises training and skill development programme for its workers.
Which of the following is not an example of the category of business responsibility stated?
a) Providing safe working conditions
b) Fair deals from management
c) Earn fair returns on capital employed
d) Develop sense of belongingness
(iii) ”...donating 5% of profits earned for plantation of trees...”.
Identify the kind of social responsibility undertaken by the company.
a) Legal
b) Personal
c) Discretionary
d) None of these
(iv) “...import raw-material from China for the same abiding by the government policy and procedures for imports”.
Identify the kind of responsibility fulfilled here.
a) Discretionary
b) Legal
c) Economic
d) Ethical
2. Direction: Read the following text and answer the questions that follow:
Shuddh Masala Udyog is a Partnership firm, which deals in trading of all varieties of spices. The partners focus on maximising
the profits on the basis of customer satisfaction. Due to increasing competition in the market, the level of profits is falling. One
of the partners advised to use substandard raw-material, to do little adulteration in products, and to maintain their profit margin.
But the other partners opposed it by saying that the consumers can take legal action against the firm. Suggestion came from other
partners to cut down the wages of workers and to withdraw the brunch facility given to them, but it was discarded on the ground
that it will create discord and unsatisfactory environment. Finally it was decided that to maintain their profits the firm has to boost
its sale and public image by fulfilling the social responsibility.
(i) “...public image by fulfilling the social responsibility...”
Social responsibility improves public image because of the following reasons?
a) Mandatory for the business
b) Legal obligation for business
c) Satisfied workers and consumers contribute in the success of the business
d) Avoidance of government interference
(ii) “... cut down the wages of workers.”
What is the reality of social responsibility that business firms don’t do this?
a) Threat of government interference
b) Development of business education
c) Pressure of labour movements
d) Burden on consumers
(iii) “...will create discord and unsatisfactory environment.”
Identify the argument in favour of social responsibility in this regard.
a) Better community to conduct business
b) Business creates social problems
c) Justification for growth of business
d) For maintenance of society
(iv) If the business resorts to substandard raw-material, and does little adulteration in products, which of interest group will be affected:
a) Workers
b) Government
c) Supplier
d) Consumer
MCQ Answers –
1. Ans: (b) Pay taxes regularly and honestly
2.Ans: (a) Shareholders
3.Ans: (d) All of the above
4.Ans: (d) All of the above
5.Ans: (a) Some social problems
6.Ans: (a) Greek Word
7.Ans: (c) Both firm’s and society interest
8.Ans: (a) Broader than legal responsibility
9.Ans: (a) USA
10.Ans: (c) Noise Pollution
11.Ans: (a) Working capital
12.Ans: (b) Ethical Responsibility
13.Ans: (a) Industrial development bank of India (IDBI)
14.Ans: (c) Discretionary responsibility
15.Ans: (a) Legal responsibility
Very Short Answers –
1. Answer: Social Responsibility of a business can be defined as an activity or a responsibility that a business carries up
and beyond the legal requirement of business for the good and well-being of the society.
2. Answer: The two examples of business ethics are honesty and law-abiding.
3. Answer: The two examples of noise pollution are malfunctioning of heart and hearing problem
4. Answer: The environment refers to all types of mankind surrounding both natural and man-made. These surroundings
are natural resources which include water, air, flora, and fauna, etc. Environment pollution is the infusion of harmful
chemicals or substances into the natural environment and causes unfavourable change.
5. Answer: An organization should provide full and detailed information about the present financial status and well-being
of the company and future plans.
6. Answer: Discretionary responsibility refers to the company’s management responsibility to protect the capital investment
by bypassing insecure activity and engaging with a healthy business venture.
7. Answer: The three responsibilities of a company towards its employees are
• Giving employees the right working culture to win the assistance of employees.
• Allowing the employees to form a union as their democratic right.
• The employee should receive a decent wage from the management.
8. Answer: Business ethics are important because
• It formulates the firm’s image and builds the brand
• It influences the buying decision of the customers
• Build confidence within employees
• Builds advantage on the competitive market
9. Answer: It is important to highlight and emphasize social responsibility to maintain the balance between the
economy and the ecosystem.
10. Answer: For every business social responsibility is important to create the company’s brand name and value.
Short Answers –
1. Answer:
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.
2. Answer:
Major Environmental Pollution Control Activities:
1. 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.
2. 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.
3. Action plans and identification of 17 categories of major polluting industries.
4. Identification of 24 major polluted areas for pollution control.
5. Factories were asked to use coal wherein % of smoke will not be more than 34%.
6. Action plans for 141 polluted rivers started.
7. 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.
8. Starting of clean technologies for big industries.
9. FortheclustersofSSI units ‘Common Effluent Plants’ was set up.
10. The echo mark scheme started to increase the production/consumption of Environment-friendly products.
11. A zoning atlas was prepared to get environmental informational district level.
12. Environmental epidemiological studies were initiated in seven critically polluted areas to study the impact of the environment on health.
13. Financial assistance to initiate pollution control environments and to shift industries in the outer places.
14. Environment Pollution (Prevention & control) authority was established.
15. Prohibition of smoking in public places and use of polythene bags.
3. Answer:
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.
4. Answer:
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.
5. Answer:
The United Nations has identified eight problems that cause damage to the natural environment.
These are:
1. Ozone depletion
2. Global warning
3. Solid and hazardous wastes
4. Water pollution
5. Freshwater quality and quantity
6. Deforestation
7. Land degradation
8. Danger to biological diversity.
6. Answer:
It is originated in the United Kingdom for the purpose of improved 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.
7. Answer:
The following are some rules which all human beings should follow in life.
1. Be trustworthy
2. Have respect for other
3. Own responsibility
4. Be fair in dealing
5. Be caring towards well being of others.
6. Prove to be a good citizen
8. Answer:
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.
9. Answer:
1. Giving enough dividends to the shareholder on their investment.
2. Making goods available of good quality and quantity at a reasonable price.
3. Making timely payments to the suppliers.
4. Having healthy competition with the competitors.
5. Observing the government laws and helping the government by paying taxes in time.
6. Making employment to the society.
7. Saving the environment from getting polluted.
10. Answer:
“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.
Long Answers –
1. Ans: The forces are as follows:
(a) The interests of stakeholders:
• To get the support of employees, it has become necessary for organizations to discharge its possibility towards their employees.
• Also, the customer does not purchase what is being provided to him, he buys what he wants. As a result of consumer sovereignty,
firms have been pushed to take social responsiveness toward them, as satisfying social commitments is good for the enterprises'
long-term survival.
(b) Long-run survival:
• When the firm's primary purpose is to serve society, the firm and its image stand to gain the most benefit in the long term.
• If a company performs its social obligation, it benefits itself.
• When a company promotes social aims, its public image improves, which further leads to long term survival and success of the business.
(c) Self-enlightenment:
• With increase in the level of education and understanding of businesses that they are the creations of the society, they are motivated
to work for the cause of social good.
• Rather than legislative interference being the cause of social responsibility, firms have human social responsibility on their own.
(d) Government regulation:
• Businessmen are said to be able to avoid government regulation by voluntarily taking on social duties, which helps to lessen the
need for new legislation.
• The Central Pollution Control Board, for example, is in charge of environmental pollution issues, and in case the company does not
adhere to the norms of this board, the board can take serious consequences against it.
(e) Resources:
• There are abundant resources available with the organizations that hold the power to partly solve the social problems.
• Businesses are dependent on society and its resources in indescribable ways, hence it is fair enough that it pays back the society both
economically and socially.
(f) Business responsible for social problems:
• Businesses have either generated or perpetuated social problems, hence it has a moral obligation to get involved in tackling these
challenges rather than relying on other social institutions to do so.
(g) Pressure of labour movement:
• The labour movement has grown in strength around the world in order to obtain gains for the working class.
• This has compelled businesses to consider the welfare of their employees rather than pursuing a "hire and fire" policy.
(h) Impact of consumer consciousness:
• Development of education and Mass media and increasing competition in the market has made the consumer conscious of his
right and power in determining market forces.
• Now, the customer is the king and is much aware of his rights, hence the businesses have started following a customer oriented
approach, to keep them happy and satisfied.
(i) Development of social standard for business:
• Various social standards have been set for business in terms of its responsibilities towards various interest groups, hence it
becomes crucial for the firms to adhere to these social standards and contribute to the society in order to ensure its long run survival.
• There is no way to run a business without interacting with the rest of the world.
• Relationship between social interest and business interest:
• Companies have begun to recognize that social and business goals are not mutually exclusive. They are, instead, complementary
to one another.
• The long-term benefit of business is in providing good service to society.
(j) Development of professional, managerial class:
• Professional managers are more concerned in fulfilling a variety of interest groups in society when it comes to running their
business than simply making a profit.
2. Ans: The responsibilities that the businesses are supposed to fulfill in the interest of different interest groups are:
Responsibility towards the shareholders or owners:
• Shareholders must also be given regular, accurate, and complete information about the company's operations and growth plans.
• The responsibility of a business enterprise is to provide a profit to its shareholders or owners.
Responsibility towards the workers:
• The right kind of working condition to be given so that it can win the cooperation of the workers.
• The company must respect the workers' democratic freedom to form unions.
• The worker must also be assured of a fair wage and a fair deal from the management.
Responsibility towards the consumers:
• The obligation of an organization towards its customers is to provide the correct quality and quantity of goods and services to
consumers at fair pricing.
• Adulteration, poor quality, a lack of required services and civility to consumers, misleading and dishonest advertising, and so
on must all be avoided by the business.
Responsibility towards the government and community:
• An organization must follow the rules of the country and pay taxes on a timely and accurate basis.
• It must act like a good citizen and adhere to the society's widely accepted values.
3. Ans: (a) Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of a standard form
of conduct/behavior of individuals, as approved by society in a particular field of activity. The relationship between company objectives,
procedures, and processes and the good of society is the subject of business ethics. The socially decided moral norms that should regulate
company activity are referred to as business ethics. Ethical business is good business. For example honesty, transparency, social welfare,
integrity etc.
(b) It is fulfilling social responsibility towards its customers, employees and society.
• Customers: The company provides quality products to its customers.
• Employees: It provides various facilities to their employees for their 5 years service.
• Society/ Community: The company is also providing computer skills to youth in remote areas free of cost, which in turn will lead to
skilled India, and make the youth capable of finding a suitable job for themselves. Also, due to this, the growth in rural areas would be made
possible.
4. Ans: I will favour Ravi. Social responsibility is important for the success of the business. The following points highlights the importance
of social responsibility:
Protect the interests of stakeholders:
• To get the support of employees, it has become necessary for organizations to discharge its possibility towards their employees.
• The customer does not purchase what is being provided to him, he buys what he wants. Hence, as a result of consumer sovereignty,
firms have been pushed to take social responsiveness toward them, as satisfying social commitments is good for the enterprises' long-term survival.
Long-run survival:
• When the firm's primary purpose is to serve society, the firm and its image stand to gain the most benefit in the long term.
• If a company performs its social obligation, it benefits itself.
• When a company promotes social aims, its public image improves as well, which further leads to the long term survival and success of the business.
Avoids government regulation:
• Government regulations are unwelcome because they stifle individual liberty.
• Businessmen are said to be able to avoid government regulation by voluntarily taking on social duties, which helps to lessen the need for new
legislation.
• For example, the Central Pollution Control Board takes care of issues related to environmental pollution, and if a business firm follows
appropriate measures to avoid environmental pollution, then the interference of the said board could be reduced.
• Given the vast financial and personnel resources at its disposal, it can assist society in better addressing its challenge.
Professionalization and better environment:
• Businesses are becoming more socially oriented as management becomes more professional.
• The ethics of profession by and manager to social values and growing concern for society.
• A society with fewer problems provides a better environment for a firm to conduct its business.
Business responsible for social problems:
• Business businesses have either generated or perpetuated social problems.
• Business has a moral obligation to get involved in tackling these challenges rather than relying on other social institutions to do so.
Converting problems into opportunities:
• Business with its history of converting risky situations into two profitable deals, can not only solve social problems but it can also make
them effectively useful by accepting the challenge.
Resource Utilisation:
• Businesses have abundant financial, managerial, technical resources. Hence, these resources can be put to use into solving various social
challenges and issues.
5. Ans: The factors against social responsibility are:
Violation of profit maximization objective:
• Business exists mainly for profit maximization. Hence social responsibility is somewhat contradictory to the primary objective of profit maximization.
• Profit maximization through higher efficiency and lower costs is the best way for business to fulfil its social obligation.
Burden on consumers:
• Pollution control and environmental protection, like social responsibility, are very expensive and frequently necessitate financial commitment.
• Instead than bearing the burden of social responsibility, they simply pass it to the consumer by demanding a greater price.
Lack of social skills:
• Businesspeople lack the essential knowledge and training to solve social issues.
• Other specialized agencies should deal with social issues.
Lack of broad public support:
• Business engagement or meddling in social programmes is disliked by the general public.
• As a result, businesses are unable to thrive due to a lack of public trust in collaborative efforts to solve societal problems.
6. Ans: The role of social responsibility is explained in the following points:
Threat to public regulation:
• Action is taken to regulate business entities that operate in a socially irresponsible manner in order to protect the interests of the public.
• One of the main reasons why businesses are concerned about social responsibility is the fear of government regulation.
• Hence social responsibility plays an important role in protecting the interests of the public, and avoiding any threat from them as well as
the government.
Pressure of labour movement:
• The labour movement has grown in strength around the world in order to obtain gains for the working class.
• This has compelled businesses to consider the welfare of their employees rather than pursuing a "hire and fire" policy.
Impact of consumer consciousness:
• Development of education and Mass media and increasing competition in the market has made the consumer conscious of his right
and power in determining market forces.
• Now, the customer is the king and is much aware of his rights, hence the businesses have started following a customer oriented approach,
to keep them happy and satisfied.
Development of social standard for business:
• Various social standards have been set for business in terms of its responsibilities towards various interest groups, hence it becomes
crucial for the firms to adhere to these social standards and contribute to the society in order to ensure its long run survival.
• There is no way to run a business without interacting with the rest of the world.
Development of business education:
• More and more individuals are becoming aware of the social purpose of business as a result of its rich content on social responsibility.
Relationship between social interest and business interest:
• Companies have begun to recognize that social and business goals are not mutually exclusive. They are, instead, complementary to one another.
• The long-term benefit of business is in providing good service to society.
Development of professional, managerial class:
• Professional management education at universities and specialized management schools has resulted in the formation of a distinct
class of professionals.
• Professional managers are more concerned in fulfilling a variety of interest groups in society when it comes to running their business
than simply making a profit.
7. Ans: The need for Pollution Control is:
• To reduce health risks: There is mounting evidence that pollution in the environment causes various diseases such as cancer,
heart attacks, and lung difficulties. Hence, there is an urgent need to control pollution.
• To reduce risk of liability: It is conceivable for a company to be held accountable for compensating people who have been harmed
by the toxicity of gaseous, liquid, or solid pollutants it has released into the environment.
• Cost savings: Faulty manufacturing technology produces more trash, resulting in higher waste disposal and facility cleaning costs.
Therefore steps to control pollution will ultimately help the firms to save their costs and expenses.
• Improved public image: A company that advocates for environmental causes will have a positive reputation and be seen as a socially
responsible business.
• Other social benefits: Controlling pollution has a number of other advantages, including improved visibility, cleaner buildings, a higher
quality of life, and the availability of natural resources in their purest form.
• Role of Business in Environment Protection:
• Organizational commitment: It shows the commitment an organization has towards the environment of which it is a part.
The firm’s commitment can be seen by the company's senior management building, maintaining, and developing a work
culture that promotes environmental protection and pollution prevention. Assuring that the company's commitment to
environmental preservation is shared by all divisions and workers.
• Policies and programmes: Through the formulation of defined policies and programmes for acquiring high-quality raw
materials, using advanced technology, employing scientific waste disposal, treatment procedures, and improving employee
skills, the firm can contribute in environment protection and conservation.
• Rules and regulations: Adherence to the government's pollution-prevention rules and regulations is another way a firm can
fulfil its role towards environment preservation.
• Participation: The firm's participation in government programmes aimed at preventing deforestation, managing dangerous
substances, cleaning up dirty waterways, and planting trees also leads to environmental protection and conservation.
• Evaluation: The firms conduct periodic evaluation of pollution control programmes in terms of costs and benefits so as to improve
environmental protection efforts.
• Organizing workshops: The firm’s efforts into organizing educational workshops and training materials to share technical
knowledge and expertise with suppliers, dealers, and customers also contributes towards pollution control programmes.
Case Study Answers –
1.
(i) a) Consumers
Solution: Providing furniture at the reasonable rates is an example of social responsibility towards consumers.
"Exercise your purchasing power as a consumer, volunteer and bring joy to those in need, and share your experiences,
tell your stories, and inspire others along the way."
(ii) c) Earn fair returns on capital employed
Solution: Earning fair returns on capital employed is not an example of the category of business responsibility stated.
(iii) c) Discretionary
Solution: Discretionary is the kind of social responsibility undertaken by the company.
Companies have a moral duty to improve the society by donating a small share of revenues to good causes, and this is a
discretionary responsibility.
(iv) b) Legal
Solution:
• Legal responsibility is fulfilled here.
• Legal responsibility: All companies are subject to legal responsibilities and are required to follow the law, which impact
organizations planning process. In order to operate soundly, a company must familiarize itself with external factors that
govern the industry that the company operates within.
2.
(i) c) Satisfied workers and consumers contribute in the success of the business
Solution: Satisfied workers and consumers contribute in the success of the business.
(ii) c) Pressure of labour movements
Solution: Pressure of labour movements is the reality of social responsibility that business firms don’t do this.
(iii) a) Better community to conduct business
Solution: Better community to conduct business. Community involvement is an easy and effective way to increase brand
awareness, establish a positive reputation, and grow your business. Plus, it allows you to establish meaningful connections
and give back to those in need.
(iv) a) Better community to conduct business
Solution: Consumer organizations are advocacy groups that seek to protect people from corporate abuse like unsafe products,
predatory lending, false advertising, astroturfing and pollution. Consumer Organizations may operate via protests, litigation,
campaigning, or lobbying.