Social Responsibilities of Business and Business Ethics Class 11 Notes: Central Board of Secondary Education (CBSE) has altered its syllabus for the current academic session 2023-2024. As a process of alteration, it has deleted some topics and chapters from Class 11 Business Studies NCERT. Check the deleted syllabus by clicking on the link present below. Also, check the latest CBSE Syllabus 2024, CBSE Sample Paper 2024, and CBSE Exam Pattern 2024. These resources play an important role in preparation for examinations. Similarly, study materials are also equally vital for preparation. Links to some study materials for Class 11 Business Studies have been attached below.
This article presents revision notes for Class 11 Business Studies Chapter 6, Social Responsibilities of Business and Business Ethics. Revision notes are a great source of study materials that consists of all important topics, definitions, and diagrams from the chapter. It breaks down the complex unit into simple subdivisions, thus making it easy to understand and remember.
Related:
Revision Notes for CBSE Class 11 Business Studies Chapter 1
Revision Notes for CBSE Class 11 Business Studies Chapter 2
Revision Notes for CBSE Class 11 Business Studies Chapter 3
Revision Notes for CBSE Class 11 Business Studies Chapter 4
Revision Notes for CBSE Class 11 Business Studies Chapter 5
Mind Maps for CBSE Class 11 Business Studies 2023-2024(PDF)
MCQs for CBSE Class 11 Business Studies 2023-2024(PDF)
Revision Notes for CBSE Class 11 Business Studies Chapter 6 are presented below:
What is Social Responsibility of business?
Social responsibility of a business is its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of society. It motivates businesses to adhere to environment-friendly business standards and do something for society.
Arguments for Social Responsibility of Business
- Justification for existence and growth
- Long-term interest of the firm
- Avoidance of government regulation
- Maintenance of society
- Availability of resources with business
- Converting problems into opportunities
- Better environment for doing business
- Holding businesses responsible for social problems
Arguments against Social Responsibility of Business
- Violation of profit maximisation objective
- Burden on consumers
- Lack of social skills
- Lack of broad public support
Reality of Social Responsibility of Business
- Threat of public regulation
- Pressure of labour movement
- Impact of consumer consciousness
- Development of social standards for business
- Development of business education
- Relationship between social interest and business interest
- Development of professional, managerial class
Kinds of Social Responsibility
- Economic responsibility– Business is an economic activity. Its foremost job is to produce goods and services and sell them to the consumers as per their needs, to gain profit.
- Legal responsibility– Every business has to function within the laws of the land. These laws are made for the benefit of the people of the country and thus business enterprises should be legally and socially responsible.
- Ethical responsibility– This deals with the behavior of the firm that is expected by society and not codified by law.
- Discretionary responsibility– It is voluntarily taken by business organizations. For example, providing charitable contributions to educational institutions or helping the affected people during floods or earthquakes.
Social Responsibility Towards Different Interest Groups
- Responsibility towards the shareholders or owners– has the responsibility to provide a fair return to the shareholders or owners on their capital investment and to ensure the safety of such investment.
- Responsibility towards the workers–It should try to create the right kind of working conditions so that it can win the cooperation of workers
- Responsibility towards the consumers– Supply of the right quality and quantity of goods and services to consumers at reasonable prices constitutes the responsibility of an enterprise toward its customers.
- Responsibility towards the government and community– An enterprise must respect the laws of the country and pay taxes regularly and honestly must protect the natural environment.
Causes of pollution
Businesses must protect the natural environment. They should take responsibility for harm that they are causing to nature in the form of gases, toxic chemicals, etc. Businesses must plan activities to control pollution, work towards reducing carbon footprints, and adapt to new technology to attain the goal of controlling climate change.
- Air pollution
- Water pollution
- Land pollution
- Noise pollution
Need for pollution control
- Reduction of health hazards
- Reduced risk of liability
- Cost savings
- Improved public image
- Other social benefits
Role of business in environment protection
- A commitment by the top management of the company to create, maintain and develop a work culture for environmental protection and pollution prevention.
- Ensuring that commitment to environmental protection is implemented by all divisions and employees.
- Developing policies regarding the purchase of good quality raw materials, employing superior technology, using scientific techniques of disposal and treatment of wastes, and developing employee skills for the purpose of pollution control.
- Abiding by the laws of government for environmental protection.
- Participating in environmental conservation programs organized by the government.
- Arrange educational workshops and training to share technical information and experience with suppliers, dealers, and customers to get them actively involved in pollution control programs.
What is business ethics?
Ethics is concerned with what is right and what is wrong in human behavior judged on the basis of a standard form of conduct/behavior of individuals, as approved by society in a particular field of activity. Thus, business ethics are the morals and values that businesses have to adapt to thrive in society.
For complete Revision notes of Class 11 Business Studies Chapter 6, click on the link below.
Also find:
CBSE Class 11 Syllabus 2023-24 (All Subjects)
CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)
NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)
