Social Responsibility Of Business And Business Ethics Class 11 Notes Business Studies Chapter 6 - CBSE

Chapter : 6

What Are Social Responsibility of Business and Business Ethics ?

Social Responsibility

It means obligations of the business persons towards the upliftment of the society.

The Case For Social Responsibility

  • Self-interest
  • Public image
  • Better environment for business 
  • Avoidance of government interference
  • Resources used for moral justification
  • Social power
  • Contribution to social problems

Social Responsibility towards different Interest Groups

  • Customers
  • Shareholders/Investors
  • Community
  • Employees
  • Government
  • Superiors and Creditors

Environment Pollution

Environmental pollution refers to injection of harmful substances in atmosphere.

  • Air pollution 
  • Water pollution
  • Land pollution

Role Of Buisness In Environment Protection

  • Periodical assessment of pollution control programmes
  • Obvious commitment by top management
  • Development of clear cut policies
  • Comply the laws and regulations enacted by government
  • Participation in government programmes

Business Ethics

It refers to the set of moral values and standards which govern the activities of a businessman. The business ethics are much above the law because laws are forced but practised even without force also.

Elements of Business Ethics

  • Top management commitment
  • Publication of a code
  • Establishment of compliance mechanism
  • Involving employees at all the levels
  • Measuring results