What went wrong when the king rode under the arch?

It was too low and knocked off his crown

How does the chain of blame unfold in the poem?

Each accused person blames another, ending with the king's own changes

How is social responsibility different from legal responsibility?

Legal responsibility is met by mere compliance with law, whereas social responsibility goes beyond law and contains a voluntary element.

State the four kinds of social responsibility.

Economic, legal, ethical and discretionary responsibility.

To which interest groups is business socially responsible?

To shareholders/owners, workers, consumers, and the government and community.

The environment is the totality of man's surroundings, both natural and man-made.

Name the four types of pollution.

Air pollution, water pollution, land pollution and noise pollution.

Why should an enterprise adopt pollution control measures?

To reduce health hazards, reduce the risk of liability, save costs, improve public image and provide other social benefits.

State the elements of business ethics.

Top management commitment, publication of a code, establishment of compliance mechanisms, involvement of employees and measuring results.

What does the Companies Act 2013 require regarding CSR?

Qualifying companies must form a CSR committee and are encouraged to spend at least 2% of their average net profit of the previous three years on CSR activities.

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CBSE Class 11 — Notes, Chapters & Practice Quizzes

Q: What is social responsibility of business?

It is the obligation of business to take decisions and perform actions that are desirable in terms of the objectives and values of society.

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Chapter 6: Social Responsibilities of Business and Business Ethics — Class 11 Business Studies

Business Studies · 11 chapters

Summary, key terms, important questions and a practice quiz with AI diagnosis for each.

Chapter 6: Social Responsibilities of Business and Business Ethics

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Social responsibility of business is the obligation to take actions that are desirable in terms of the:

Summary

Social responsibility of business is the obligation of business to take decisions and perform actions that are desirable in terms of the objectives and values of society; it is broader than legal responsibility because it goes beyond mere compliance with law and contains a voluntary element. The case for social responsibility rests on arguments such as the justification for the existence and growth of business, its long-term interest, avoidance of government regulation, maintenance of society and the conversion of problems into opportunities; the case against it includes violation of profit maximisation, burden on consumers, lack of social skills and lack of public support. Several forces — public regulation, the labour movement, consumer consciousness, business education and a professional managerial class — have made businesses more socially responsible. Social responsibility is of four kinds: economic, legal, ethical and discretionary, and is owed to shareholders, workers, consumers, and the government and community. Business must also protect the environment from air, water, land and noise pollution by committing to pollution control through top-management commitment, clear policies, compliance with laws such as the Environment (Protection) Act 1986 and participation in government programmes. Business ethics are the socially determined moral principles that should govern business, with elements such as top management commitment, a published code of conduct, compliance mechanisms, involvement of employees and measurement of results. Under the Companies Act 2013, qualifying companies must spend at least 2% of their average net profit on CSR.

Concept of social responsibilityArguments for and against social responsibilityForces making business socially responsibleKinds of social responsibilityResponsibility towards interest groupsBusiness and environmental protectionBusiness ethics and its elementsCSR under the Companies Act 2013

Key terms

Social responsibility

The obligation of business to take decisions and perform actions that are desirable in terms of the objectives and values of society.

Discretionary responsibility

Purely voluntary social responsibility assumed by business, such as charitable contributions and disaster relief.

Environment

The totality of man's surroundings, both natural and man-made, into which pollution injects harmful substances.

Pollution

The injection of harmful substances into the environment, largely the result of industrial production.

Business ethics

The socially determined moral principles which should govern business activities, such as fair prices and fair treatment of workers.

Corporate Social Responsibility (CSR)

A continuing commitment by business to contribute to economic development while improving the quality of life of the workforce, community and society, governed in India by the Companies Act 2013.

Important questions

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The obligation of business to take decisions and perform actions that are desirable in terms of the objectives and values of society.

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