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Social responsibility of business and business ethics

Social Responsibilities of Business and Business Ethics

Today we are going to discuss the new chapter of business studies CBSE class 11 that is the social responsibility of business and business ethics.

Also, we are going to give you study notes, video lectures, and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.

Social responsibility of business and business ethics
Social responsibility of business and business ethics

Topics Which we will cover in this article of Social responsibility of business and business ethics are:-

  1. Social responsibility of business and business ethics concepts
  2. Cases of Social responsibility of business
  3. The reality of Social responsibility of business
  4. Social responsibility of business towards different interest group
  5. Business and environment protection
  6. Need for pollution control
  7. ways and means of pollution control
  8. Business ethics and elements of business ethics

Social Responsibility of Business And Business Ethics Concepts

The primary motive of every business is to earn a profit. But for the business to go smooth we have to keep in mind the social objective (like Society, Government, and Environment) and employee’s objective also.

Business can grow better only when the need of the customers is satisfied. The need of the customers is that the product available in the market is low in price, high in quality, high in service, more durable means last long, less harmful, and high standard.

“Social responsibility means the obligation(Duty) of the business towards the upliftment of the society.”

Causes for Social Responsibility

1) Self-interest:- All the businessmen want their profit always increase for this they have to work as per the need of the customers.

2) A better environment of business:-The public or the customers need a better environment. For providing a better environment the businessmen have to increase the quality of their product, increase the standard, and this type of business will run more and also earn more profit for the businessmen.

3) Public Image:-Every businessmen want their business to grow and reach a large number of people. For this, they have to reduce price, improve quality, and this automatically increases the Image(Goodwill) which leads to an increase in the profit of the business. For example -MI(Xiaomi).

4) Avoidance of Government Interference:-Every business wants less interference of the government. For this, they have to reduce the price or at less price provide a better quality product, and avoid harmful ( includes Black marketing, Adulteration, etc) practices in business which will automatically decrease government interference.

5) Social Power:-This can be increased by providing jobs to more number of people, increasing the standard/income of the employees this will helps in increasing profit, the image of the business automatically.

6) Resources used for moral justification:-This can be increased by increasing the standard of the employees for getting government support and earn more profit and image.

The Reality of Social Responsibility

In this topic, we will be going to discuss the reasons for the businessmen to follow Social Responsibility.

The threat of Public Regulation

Any Business which poses threat to the customers by disobeying the law, consumer rights, or defective products then the government will directly enter the Business and gives the deadline to shut down their business, which leads to the destruction of the business and the business will go in vain.

This force of government will keep the businessmen to make the products favorable and friendly for the customers because if they do not do so then the government will interfere and their business may be let down.

Organizations or business owners should keep in mind the profits of the laborers or the workers so that their requirements are fulfilled and the business will work smoothly. Workers also have certain rights like a proper salary from time to time if they not get them properly then they will go on strike which affects business.

These are some social responsibilities of the Business owners to fulfill for the sake of the workers.

Impact of Consumer Consciousness

Consumers are very clear of consumer rights because they hear advertisements from TV, radio, mobile, newspapers, etc. The government left no stone unturned to provide the consumer with their rights so that they are not created by the companies and also there are certain places where consumers can complain if there is any problem. The government checks the issue and takes immediate action if there is any fault from the company.

This forces the Businessmen to follow the social responsibilities of the business properly. Today the consumers know that if they are cheated then go to the complain office and file a complaint against the company.

Development of Social Standard for Business

Those businesses which increase the standard of the workers and when the standard increases then they buy new things then the image of the business will good in front of the people and the government through which business will run and make more profit.

They have a threat of public regulation and pressure of the labor movement.

Development of Business Education

Relationship between social interest and business interest.

Development of professional-managerial classes.

Social Responsibility towards different interests groups

  1. Customers
  • The business should improve its quality standards.
  • They have to do a regular supply of products.
  • They have to educate customers.
  • They have to do fair trade in the market.
  • They have to do a quick reply to the customers.
  • They have to work as per customer requirements.

2. Employees

  • The businessman has to give fair payment to all the employees.
  • Provide better working conditions.
  • Ensure the growth and development of the employees.
  • Regularly taking the review of the business from the employee’s side also called peer recognition.
  • Providing incentives(Awards and rewards ) to the employees from time to time as per their quality of work.

3. Government

  • The business should follow rules and regulations issued by the government.
  • Pay tax time to time.
  • Solve the social problems of the people.
  • The business should Co-operate with the government.

4. Owners/Investors/Shareholders

  • Provide safety to the owners.
  • Provide fair returns on their investment.
  • Providing the proper information.
  • Proper utilization of resources.
  • Involve investors in decision making to increase their trust in the business.

5. Community

  • Keep an eye on pollution and control it regularly.
  • Provide amenities(like hospital, schools, etc) to a larger number of people.

6. Supplies

  • Provide regular payments to people.
  • Fair dealing with employees.
  • Protect small suppliers by buying from them.
  • Proper guidance to the suppliers.

Business and environment protection

In this section, we will be going to discuss various activities done by the business owners to control environmental pollution.

Pollution refers to the injection of harmful substances into the environment.

Mainly three things come under the environment when we judge it those are air, water, and land.

Causes of environmental pollution

A) Air pollution – Injection of harmful substances into the air(atmosphere) is called air pollution.

In the atmosphere when the pollution released by the running vehicles gets mixed in the air then it forms smoke which pollutes the surrounding air. Which in return is also responsible for the depletion of the ozone layer too.

Carbon dioxide released from the vehicles is responsible for global warming.

B) Water pollution – Injection of harmful substances into the water is called water pollution.

When the industries dump their waste produced into the water and the water bodies get polluted which pollutes nearby river streams and freshwater lakes and harms the environment.

C) Land pollution – Injection of harmful substances on the land is called land pollution.

The land around our surroundings is polluted by the non-biodegradable wastes dumped in the ground, toxic waste used by the farmers like fertilizers, pesticides, through these practices the land becomes polluted and becomes unfit for the crops and agriculture. Continuously using these practices can turn the fertile land into barren land.

Land pollution can be checked by a method called solid waste disposal.

Need for pollution control

A) Ensure safety – Sometimes when we drive the vehicle on the road we can see the smoke in the air by which we cannot drive clearly and sometimes accidents occur.

When there is smoke in the road then it lowers the visibility of the drivers and increases the number of accidents.

So reducing pollution can help in reducing the risk of accidents.

B) Economic losses – Due to pollution our economy gets reduced and the business suffers the loss.

C) To maintain natural beauty – we can take the example of taj mahal, The natural beauty of taj mahal is getting reduced due to acid rain in Agra.

D) Ensure a healthy life – If we want to live longer then definitely we have to stop all kinds of pollution Because directly or indirectly they are affecting our health.

E) To ensure a comfortable life – we can live a comfortable life if we have no disease or we are disease-free, we get healthy food and all these we only get when there is less pollution. So, we need to reduce pollution.

Ways and means of pollution control

A) Environmental Evolution – In this section the companies have to prepare a written document in which the company has to declare that the number of machines and their quantity of doing pollution to the environment and submit it to the government office for approval. The government then checks that the pollution rate of the machines is low or high if only the pollution rate found low then the government will give the approval to run the factory or company, and if the pollution rate found high then the approval of the company rejected by the government.

B) Pollution control standards – The government launched two programs Euro I and Euro II line pollution standards. Through these programs, any company pollution level found more than as prescribed by the government then the company will be shut down by the government.

C) Regulations – Through this, the government has control over all the approved industries.

The government regularly check and control the pollution level of these industries.

D) Ban – The government has the power to ban certain substance /things which are harmful to the environment. E.g.-polythene bags, smoking, vehicles without pollution certificate are banned by the government.

Role of business in environment protection

Following are some of the role of business in environmental protection which is as follows –

  • The echo-friendly technique of production
  • Recycle waste
  • Must participate in Echo-friendly activities like Swachcha Bharat mission etc.
  • Always try to make Echo-friendly products like jute bags for carriage etc.
  • Spread awareness to the public about the use of Echo-friendly techniques and productions in our day to day life.

Business Ethics

Business ethics refers to a set of rules/norms which govern/control activities of the business.

Those businesses which follow all the norms prescribed by the government are called ethical business.

Some rules/norms of business ethics are:-

1) Provide customer true information regarding products and services.

2) Every businessman should make the pollution standards of their company.

3) Provide quality products to the customers at a cheap or reasonable price.

4) All businesses must allow customers to make free choices.

Elements of ethical business

The ethical business makes its own rules which are to be followed in their organization.

There are some elements of business ethics which are as follows –

A) Top management commitment – In this, top-level managers must guide their employees towards ethical behavior.

B) Publication of code – Ethical business writes a document which is called code. In this document, they describe a fair way to do the production, good working conditions for the employees, etc.

They also describe a code of conduct in which all the activities are cleared which can be or cannot be done by the employees in their working time.

C) Establishment of Compliance(Standards) mechanism – Accept reports from the employees that the prescribed work is completed in time or not. If not completed then in this case the owner asks them why the work is not completed in the prescribed time. The owner should not scold its employees.

D) Involving employees at all levels – Ethical business must involve their employees to participate in decision making. Through this, the employees got involved and give their own opinions.

E) Measuring results – The ethical business must measure the results on whether the work is completed or not and also calculate how much time it takes to complete all the prescribed work.

So, Guys, we have finally over with this chapter.

So, I hope you have enjoyed our article, please COMMENT and SHARE it. Also, if you have any questions you can ask by clicking here.

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Business Vidya

Hello, my name is KUNAL LONHARE. I am an entrepreneur based in india. This is a blog and I am the founder of it, where I post how can a person acquire Good marks In academics without wasting any money for tuition fees.

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