TN Board 11th Commerce Important Questions Chapter 17 Social Responsibility of Business and Business Ethics

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TN State Board 11th Commerce Important Questions Chapter 17 Social Responsibility of Business and Business Ethics

Very short answer questions

Question 1.
What is the relation between ethics and moral values?
Answer:
Ethics refer to the entire body of moral values which society attaches to the actions of human beings.

Question 2.
What do you mean by the principles derived from social values which guide and conduct of businessmen?
Answer:
Business ethics are principles derived from social values which guide and govern the conduct of businessmen.

Question 3.
Mention two responsibilities of business towards customers.
Answer:
Supply or right quality of goods and proper precaution against adulteration.

Question 4.
Give any two reasons supporting social responsibilities.
Answer:

1. It is in the long-term interest of the business.
2. It is justified for the growth and existence of the business.

Question 5.
Define pollution.
Answer:
Pollution is a change in the physical, chemical, and biological characteristics of our land and water.

Question 6.
Give any one point of difference between ethics and law.
Answer:
Ethics are self-imposed while laws are imposed by an external governing authority.

Question 7.
Do businessmen have the skill to tackle social problems?
Answer:
Yes, businessmen have the skill to tackle some but not all social problems.

Short answer questions

Question 1.
What is a code of ethics?
Answer:
An enterprise must clearly define the – ethical code of conduct to be followed in the organization. The code should include quality standards for work law governing production and employees’ health and safety standards.

Question 2.
Define social responsibility.
Answer:
According to Peter F. Drucker, “Social Responsibility requires managers to consider whether their action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength, and harmony”.

Question 3.
Mention the kinds of social responsibility.
Answer:

1. Economic responsibility.
2. Legal responsibility.
3. Ethical responsibility.
4. Discretionary responsibility.

Question 4.
Explain responsibility towards supplies.
Answer:

1. Giving regular orders for the purchase of goods.
2. Dealing on fair terms and conditions.
3. Availing reasonable credit period.
4. Timely payment of dues.

Question 5.
Examples of corporate social responsibility in India.
Answer:

1. Tata Group
2. Mahindra and Mahindra,

Question 6.
Explain responsibility towards investors.
Answer:

1. Ensuring the safety of their investment.
2. Regular payment of interest.
3. Timely payment of the principal amount.

Question 7.
Difference between ethics and law.
Answer:

Ethics	Law
Business ethics refer to the socially deter­mined moral principles which should govern business activities.	Laws are determined by the legal bodies of a country.

Long answer questions

Question 1.
Write any four reasons against the social responsibilities of business.
Answer:
These are responsibilities that society has towards everyone they are not the responsibilities of individuals but ones we share as a society.

1. Reason: Violation of profit maximization as per this argument business enterprises claim that our objective is profit maximization business can reduce its cost and raise profit and them only it can meet its social responsibility.
2. Lack of social skills: Business enterprises neither have still nor experience to solve 1 all types of social problems. Therefore it j should be handled by specialized agencies.
3. The burden on consumers: Many of the social responsibilities cost a lot its burden falls on consumers only.
4. Lack of broad public support: Businesses cannot operate successfully because of a lack of co-operation and confidence from the public to business enterprises.

Question 2.
Explain the various elements of business ethics?
Answer:
Business ethics should be followed in the day-to-day working of a business enterprise the following are some of the elements of business ethics.

1. Commitment by top management: Top-level officers such as the CEO’s other higher level managers must sincerely follow the ethical code of conduct, they should also guide other employees in their organizations in adopting the code.
2. Publication of code: An enterprise must clearly define the ethical code of conduct to be followed in the organization. The code should include quality standards. For work, laws, governing production and employees health and safety standards.
3. Establishment of compliance mechanism:
   In addition to setting performance standards, an enterprise must also devise a mechanism through which it can measure the actions of individual employees. These should be done in order to confirm whether the ethical standards are being met.
4. Involvement of employees at all levels:
   The successful implementation of ethical standards depends to a large extent on the involvement of employees at different levels, this is because it is employees who actually implement the ethical job.

For Own Thinking

Question 1.
To identify ethical and unethical practices of business enterprises.
Answer:
(a) Ethical:

1. Investors: Ensuring the safety of their money and timely payment of interest.
2. Employers: Provision of fair opportunities in promotions and training, good working environment, and timely payment of salaries.
3. Customers: Complete information on the service and product should be made available. Personal information of the customers. Should not be used for personal gain.

(b) Unethical:

1. Resorting to dishonesty, trickery, or deception.
2. Distortion of facts to mislead or confuse.
3. People emotionally by exploiting their vulnerabilities.
4. Greed to a mass excessive profit.

Question 2.
To understand the level of discharging Socially Responsibility practices of business units.
Answer:
Business is an economic activity. It is argued by the opponents of social responsibility that the basic function of a business enterprise is to look into the economic viability of its operations. It is the government to look after the interests of the society. The prime responsibility of assuming social responsibility should therefore be of the government and not of the business enterprises.

Question 3.
To analysis the impact of Social Responsibility Of Small, Medium, and Large scale enterprises in Society.
Answer:

1. Respect for the employer’s rights.
2. Ensuring operational safety and security at the workplace.
3. Occupational health.
4. Good governance and good practices.
5. Compliance with the laws.

Question 4.
To clearly distinguish the benefits derived by different stakeholders while* discharging of Social Responsibility of business units.
Answer:
CSR should not be taken to include steps taken as a result of legal obligations to prevent or mitigate harm. In that regard, a growing number of theorists are now suggesting that companies have a fundamental existential obligation to adequately plan for and manage sustainability issues in order to avoid breaches of director’s duties as a result of a failure to mitigate risk in this area.

For Future learning

Question 1.
To evaluate the impact of social responsibility on the profitability of the business unit.
Answer:
There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility. In this article, the author traces the evolution to the CSR construct beginning in the 1950s which marks the modem area of CSR.

Question 2.
To predict methods by which social responsibility can be discharged.
Answer:
We use data from different sources to analyze whether actual environmental outcomes such as emissions and environmental fines can be explained by lagged environmental ratings.

Question 3.
To depict through pictures, the stakeholder’s position in a company taking socially responsible activities.
Answer:
In order to completely understand the context of corporate social responsibility, you must first understand the role of stakeholders for an organization. The next section will describe the role of stakeholders. Two types of primary stakeholders and secondary stakeholders.

Multiple choice questions

1. Social responsibility is:
(a) same as a legal responsibility
(b) broader than legal responsibility
(c) narrower than legal responsibility
(d) None of them
Answer:
(b) broader than legal responsibility

2. If the business is to operate in a society that is full of diverse and complicated problems it may have:
(a) little chance of success
(b) great chance of success
(c) little chance of failure
(d) no relation with success or failure
Answer:
(a) little chance of success

3. Business people have the skills to solve:
(a) all social problems
(b) some social problems
(c) no social problems
(d) all economic problems
Answer:
(b) some social problems

4. That an enterprise must behave as a good citizen is an example of its responsibility towards:
(a) owners
(b) workers
(c) consumer
(d) community
Answer:
(d) community

5. Carbon monoxide emitted by automobile directly contributes to:
(a) water pollution
(b) noise pollution
(c) land pollution
(d) air pollution
Answer:
(d) air pollution

6. Which of the following can explain the need for pollution control?
(a) Cost savings
(b) Reduced risk of liability
(c) Reduction of health hazards
(d) All of them
Answer:
(c) Reduction of health hazards

7. Which of the following is capable of doing maximum good to society?
(a) Business success
(b) Ethics
(c) Laws and regulations
(d) Professional management
Answer:
(b) Ethics

8. Which of the following alone can ensure effective ethics program in a business enterprise?
(a) Publication of code
(b) Involvement of employee
(c) Establishment of compliance mechanisms.
(d) None of them
Answer:
(c) Establishment of compliance mechanisms.