Please refer to Social Responsibilities of a Business Class 11 Business Studies Important Questions with solutions provided below. These questions and answers have been provided for Class 11 Business Studies based on the latest syllabus and examination guidelines issued by CBSE, NCERT, and KVS. Students should learn these problem solutions as it will help them to gain more marks in examinations. We have provided Important Questions for Class 11 Business Studies for all chapters in your book. These Board exam questions have been designed by expert teachers of Standard 11.
Class 11 Business Studies Important Questions Social Responsibilities of a Business
Very Short Answer Type Questions
Question. Explain the social responsibility of business.
Answer : Social Responsibility of a business can be defined as an activity or a responsibility that a business carries up and beyond the legal requirement of business for the good and well-being of the society.
Question. Give two examples of noise pollution
Answer : The two examples of noise pollution are malfunctioning of heart and hearing problem
Question. How does an organization have a social responsibility towards owners’ and shareholders’?
Answer : An organization should provide full and detailed information about the present financial status and well-being of the company and future plans.
Question. State three responsibilities of a company towards its employees.
Answer : The three responsibilities of a company towards its employees are
• Giving employees the right working culture to win the assistance of employees
• Allowing the employees to form a union as their democratic right.
• The employee should receive a decent wage from the management
Question. Explain why social responsibility is highlighted?
Answer : It is important to highlight and emphasize social responsibility to maintain the balance between the economy and the ecosystem.
Question. Mentioned two value that a business should follow.
Answer : The two value that a business should follow are.
• Social Value- A company gains maximum profit when the company’s main aim is to serve the society. An image of a company improves when they support social goals.
• Professional Value- A company with business ethics provides a satisfying environment for the employee to work and conduct the business. Lack of professionalism can create problems and confusion in the workplace.
Question. Write two examples of business ethics?
Answer : Two examples of business ethics are law abiding and trustworthiness
Question. What is environmental pollution?
Answer : The environment is defined as the totality of man’s surroundings — both natural and man-made. These surroundings are also in the nature of resources, that are useful for human life. The resources may also be called natural resources like land, water, air, fauna and flora and raw materials; or manmade resources such as cultural heritage, socio-economic institutions and the people. Pollution— the injection of harmful substances into the environment is, in fact, largely the result of industrial production.
Question. What do you mean by Discretionary responsibility?
Answer : It is the responsibility of the company management to safeguard the capital investment by avoiding speculative activity and undertaking only healthy business ventures which give good returns on investment. For example: providing charitable contribution etc.
Question. ‘Social responsibility is burden n consumer’ Describe the statement?
Answer : Social responsibilities like pollution control and environmental protection are very costly and often require huge financial investments. Businessmen simply shift this burden of social responsibility by charging higher prices from the consumers instead of bearing it themselves
Question. Why social responsibility is emphasized? State one need for social responsibility?
Answer : Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems
A socially responsible company can create a company’s image and build its brand. By projecting a positive image, a company can make a name for itself for not only being financially profitable, but socially conscious as well.
Short Answer Type Questions
Question. Why is business responsible for Environment Protection?
Answer : The environment is defined as the totality of man’s surroundings — both natural and man-made. These surroundings are also in the nature of resources, that are useful for human life. The resources may also be called natural resources like land, water, air, fauna and flora and raw materials; or manmade resources such as cultural heritage, socio-economic institutions and the people
Pollution— the injection of harmful substances into the environment is, in fact, largely the result of industrial production. Pollution changes the physical, chemical and biological characteristics of air, land and water.
Pollution exists because the environment can absorb only a limited amount of pollutants and wastes. Some hazardous wastes or toxic by-products and chemicals are termed as hazardous pollutants because they have toxic characteristics that the environment can not assimilate. Pollution thus causes risks to environmental quality, human health and damage to natural and man-made resources.
A definite commitment by top management of the enterprise to create, maintain and develop work culture for environmental protection and pollution prevention will help.
Question. Why should a business assume social responsibility?
Question. Define business ethics and explain its significance?
Answer : Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of a standard form of conduct/behavior of individuals, as approved by society in a particular field of activity. Business ethics concerns itself with the relationship between business objectives, practices, and techniques and the good of society. Business ethics refer to the socially determined moral principles which should govern business activities. Ethical business is good business. Ethical business behaviour improves public image, earns people’s confidence and trust, and leads to greater success.
Business Ethics is important due to the following points:
1. It create a company’s image and build its brand
2. It impact the buying decisions of customers
3. Employee feel like they are part of ethical and good firm
4. It helps having a edge in competitive market.
Question. ABC Ltd. deals in health drinks. It is found that there are components of pesticides in their drinks. Mention which 2 kinds of responsibilities and 2 values are missing from this approach
Answer : Two Kinds of Responsibility are as follows:
1. Ethical Responsibility: Behaviour that is expected by society but not codified in law. There is an element of voluntary action in performing this responsibility
2. Legal Responsibility: Every business has a responsibility to operate within the laws of the land. A law abiding enterprise is a socially responsible enterprise aswell Two Kinds of values are as follows:
1. Social Value: A firm and its image stands to gain maximum profits in the long run when it has its highest goal as ‘service to society’. It is in its own interest if a firm fulfills its social responsibility. The public image of any firm would also be improved when it support social goals which is missing in the company.
2. Professional value: The ethics of profession bind managers to social values and growing concern for society.
A society with fewer problems provides better environment for a firm to conduct its business. Lack of professionalism creates more problems
Long Answer Type Questions
Question. It is in the interest of business to fulfill its social responsibilities towards different interest groups. Explain?
Question. There is a group discussion taking place in class XI regarding social responsibility of business’ Ravi feels that a business should be socially responsible towards the society it exists in while shama is against it as basic objective of a business is to earn project. Whom do you think, you will favour? Write points with respect to you opinion
Answer : I will favour Ravi. Social responsibility is important for the success of the business.
Protect the interests of stakeholders
To get the support of employees, it has become necessary for organisations to discharge responsibility towards their employees.
Consumer does not buy what is offered to him. He buys what he wants. Consumer sovereignty has, thus, forced firms to assume social responsiveness towards them Fulfilling social obligations is beneficial for long-run survival of the firms.
A firm and its image stands to gain maximum profits in the long run when it has its highest goal as ‘service to society’
It is in its own interest if a firm fulfills its social responsibility.
The public image of any firm would also be improved when it support social goals.
With increase in the level of education and understanding of businesses that they are the creations of society, they are motivated to work for the cause of social good.
Managers create public expectations by voluntarily setting and following standards of moral and social responsibility.
Rather than legislative interference being the cause of social responsibility, firms assume social responsibility on their own.
Avoids government regulation
Government regulations are undesirable because they limit freedom.
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 For example, Central Pollution Control Board takes care of issues related to environmental pollution.
Business organisations have enormous resources which can be partly used for solving social problems.
Businesses are the creation of society and must work in the best interest of society, both economically and socially.
It can help society to tackle its problems better, given the huge financial and human resources at its disposal.
Professionalisation and Better environment
Management is moving towards professionalism which is contributing to social orientation of business.
The ethics of profession bind managers to social values and growing concern for society.
A society with fewer problems provides better environment for a firm to conduct its business.
Holding business responsible for social problems
Social problems have either been created or perpetuated by business enterprises themselves.
It is the moral obligation of business to get involved in solving these problems, instead of merely expecting that other social agencies will deal with them.
Converting problems into opportunities
Business with its history of converting risky situations into profitable deals, can not only solve social problems but it can also make them effectively useful by accepting the challenge.
Question. Describe the role of social responsibility in todays era?
Threat of public regulation
where business institutions operate in a socially irresponsible manner, action is taken to regulate them for safeguarding people’s interest.
This threat of public regulation is one important reason due to which business enterprise feels concerned with social responsibility.
Pressure of labour movement
labour movement for extracting gains for the working class throughout the world has become very powerful.
This has forced business enterprises to pay due regard to the welfare of workers instead of following a policy of ‘hire and fire’ policy.
Impact of consumer consciousness
Development of education and mass media and increasing competition in the market have made the consumer conscious of his right and power in determining market forces.
Now, customer is the king and business have started following customer oriented approach.
Development of social standard for business
New social standards consider economic activity of business enterprises as legitimate but with the condition that they must also serve social needs.
No business can be done in isolation from society.
Development of business education
Development of business education with its rich content of social responsibility has made more and more people aware of the social purpose of business.
Relationship between social interest and business interest
Business enterprises have started realising the fact that social interest and business interest are not contradictory. Instead, these are complementary to each other.
long-term benefit of business lies in serving the society well.
Development of professional, managerial class
Professional management education in universities and specialised management institutes have created a separate class of professional managers.
Professional managers are more interested in satisfying a multiplicity of interest groups in society for running their enterprises successfully than merely following profit goals.