Download App

Social Responsibilities of Business and Business Ethics — Business Studies STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceBusiness StudiesSocial Responsibilities of Business and Business Ethics6 Marks
Question
Build up arguments for and against social responsibilities.
✓

Answer

Arguments for Social Responsibility:
  1. Justification for Existence and Growth: The mission of every business is to provide goods and services to satisfy human wants. Profit should be viewed as an outcome of services to the people. Thus, practice of social responsibility by business provides justifications for its existence and growth.
  2. Long-term Interest of the Firm: Social responsibility enhances the image and goodwill of the firm and results in maximum profits In the long run. If members of the society like workers, consumers, shareholders, and government officials are not convinced that the business enterprise is socially responsible, they will tend to withdraw their cooperation to the enterprise concerned.
  3. Avoidance of Government Regulation: Government regulations limit the freedom of business. It is believed that businessmen can avoid the problem of government regulations by voluntarily assuming social responsibilities, which helps to reduce the need for new laws.
  4. Maintenance of Society: Business enterprises should assume social responsibilities as the people who are dissatisfied with the business may resort to anti-social activities which may harm the interest of business itself.
  5. Availability of Resources with Business: Business institutions can help society to tackle its problems better as they have valuable financial and human resources which can be effectively used for solving problems.
  6. Converting Threats into Opportunities: Business enterprises can solve the social problems and can reap gains from them by accepting the challenge of converting risky situations into profitable deals.
  7. Better Environment for Doing Business: Business may have little chance of success. If it is to operate in a society full of diverse and complicated problems. Therefore the business system should do something to solve the social problems to create a better environment conducive to its own survival.
  8. Holding Business Responsible for Social Problems: Some of the social problems like environmental pollution, unsafe workplaces, corruption in public Institutions, and discriminatory practices in employment have either been perpetuated by business enterprises themselves. Therefore. it is the moral obligation of business to contribute in solving these problems.
Arguments Against Social Responsibility:
  1. Violation of Profit Maximisation Objective: According to this argument, business exists only for profit maximisation and social responsibility is against this objective. Social responsibility of business is fulfilled it it maximises profits through Increased efficiency and reduced costs.
  2. Burden on Consumers: It is argued that social responsibilities like pollution control and environmental protection involve huge costs which are likely to be shifted on to the consumers in the form of higher prices.
  3. Lack of Social Skills: According to this argument social problems should be solved by specialised agencies as businessmen do not have the necessary understanding and training to solve social problems.
  4. Lack of Broad Public Support: According to this argument, the public in general does not like business involvement or interference in social programmes because of which business cannot operate successfully in solving social problems.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Social Responsibilities of Business and Business Ethics→Social Responsibilities of Business and Business Ethics — all question types→Business Studies STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Ranging from steel, automobiles and software to consumer goods and telecommunications the Tata Group operates more than 80 companies. It has around 200,000 employees across India and thus has the pride to be nation's largest private employer. Mr. Ratan N. Tata has led the eminent Tata Group successfully. Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata, the founder of today's Tata empire in the 1860s. Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of its net profit every year for various social causes. Even when economic conditions were adverse, as in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from 670 million in 1997-98 to 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent 45 crore on social services.
On the basis of the given information about the Tata Group, answer the following questions:
(a) If profit earning is the main objective of business, then why many business organisations like Tata Group are spending money for social causes?
(b) Identify the values that are reflected from above information about Tata group.
→
Give the differences between e-business and traditional business.
→
Aman, who is working in a multinational company gets a salary of 85,000 per month. He met his friends Lakshay, who is a Chartered Accountant and Manoj, who is a retailer of shoes. Aman calls both his friends as businessmen.
On the basis of the given information about three friends, answer the following questions:
(a) Do you think Aman is right in calling both his friends businessmen, how would you classify Aman, Lakshay and Manoj as? Give reasons for the same.
(b) Differentiate between the activities performed by these three friends on any two basis.
→
Ashok was appointed as a marketing head of Alia Enterprises which manufacturers toothpaste and toothbrushes. His target turnover was 5000 units a month. Apart from thinking about various channels of distribution to achieve the target, he himself started visiting schools in backward areas. He found that even after taking various steps and counselling, some school children had not started brushing their teeth. He investigated and found that they could not afford to buy toothbrush and toothpaste. So with due permission, he started selling 500 toothbrushes and toothpastes every month to the school at a very minimal cost.
On the basis of the given information about Alia Enterprises, answer the following questions:
(a) Identify the interest group towards which Alia Enterprises is fulfilling its social responsibility.
(b) State the various social responsibility towards the interest group in identified in part (a).
(c) Identify any two values which the company is trying to communicate to the society.
→
What is a Memorandum of Association? Briefly explain its clauses.
→
Buyers Stops Ltd. is having multiple stores in various parts of the country, offers various types of daily use products under one roof. Each store is placed under the charge of a store manager who is allowed to run their stores independently by deciding about the products to be promoted, appointment of workers, customer complaints etc. As these managers have a wide knowledge of the area acceptability, it enables them to take these decisions effectively keeping in view of the prevailing circumstances and consumers' needs. This resulted in improvement of customer service and at the same time serves to boost morale and increase the job satisfaction of the store managers.
The details of various transactions undertaken at Green Park Store on a 7 March 2018 are as follows:
- The manager of Evergreen Stores purchased merchandise worth $₹ 53400$ on credit basis and promised to settle payment within two months.
- The manager of Sunshine Stores purchased 250 units of napkin boxes at the rate of ₹ 100 per box. After a week the manager of Sunshine Stores sent back 20 boxes along with a document stating that these boxes were defective. The store incharge of Green Park Store accepted the boxes and handed over another document to office boy of Sunshine Stores.
On the basis of the given information about Buyers Stops Ltd., answer the following questions:
(a) Identify and explain the document of trade used by the manager of Green Park Store while dealing with the manager of Evergreen Stores.
(b) Identify and explain the document of trade used by the manager of Sunshine Stores while dealing with the manager of Green Park Store.
(c) Identify and explain the document of trade used by the manager of Green Park Store while dealing with office boy of Sunshine Stores.

→
Good Looks Pvt. Ltd. was promoted in the year 2000 by a group of four friends. As business of the company has grown considerably over the years, its management is now planning to convert it into a public company and raise funds in next six months to finance its future expansion plans in health care business.
On the basis of the given information, answer the following questions:
(a) State any four privileges that the company will have to forgo as a private company after conversion.
(b) State any two values that should not be ignored by the promoters of this company
→
What obligation does a businessman have towards the government?
→
Shikha is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips, and nail polish to a retail chain with three branches in thecity. She looks after the varied functions in all the branches, but now she wants to change her form of business as she also has plans to open branches countrywide. She is also planning to collect the funds by issue of shares.
On the basis of the given information about Shikha, answer the following questions:
(a) Which form of business is suitable for Shikha for the expansion of business? Also mention any two benefits of that form of business.
(b) Explain two benefits of remaining a sole proprietor.
→
What is IMF? Discuss its various objectives and functions.
→