chapter 6 of class 11 business studies

1. Social
responsibility of
business and
business ethics
Submitted to
Veenu Oberoi ma’am
(BUSINESS STUDIES
TEACHER)

2. CONCEPT
 The concept of social responsibility is
fundamentally an ethical concept.The concept
provides a way for business to concern itself
with social dimensions and pay some
attention to social impacts.In other words,
business organisations have some kind of
obligations towards the society in which they
function to dealwith social problems and
contribute more than economic goods and
services.

3. KINDS:
 Legal responsibility
 Economic responsibility
 Ethical responsibility
 Discretionary responsibility

4. Examples of socially responsible
Indian companies.
 Asian paints: working in the area of large
scale community development projects.
 Pepsi: is working in the area of promotion of
sports.
 TISCO: is working in the area of tribal area
development.
 Brooke bond : is working in the area of
animal welfare.
 And many more…

5. Social responsibility towards
different interest groups
 Responsibility towards
shareholders/investors/owners.
 Responsibilities towards workers/employees.
 Responsibility towards the consumers.
 Responsibility towards the government.
 Responsibility towards the community.

6. Responsibility towards
shareholders/investors/owners.
 To pay a fair return on their investment.
 To ensure the saftey of their investment.
 To provide regular, accurate and full information
about working of business and schemes of future
growth.
 To maximise shareholder’s wealth
 To provide opportunities for participation of share
holder in policy decisions.
 To protect the intrest of all types of nvestors in
business.

7. Responsibilities towards
workers/employees.
 To pay fair wages salaries to workers and
employees.
 To provide good working conditions.
 To provide service benefits such as medical
faclities Etc…
 To develop their skills through trainings and
educations.
 To win their cooperation by creating good
human relations.

8. Responsibility towards the
consumers.
 To supply right quality of goods and services
at a resonable price.
 To ensure regular and adequate supply of
products.
 To avoid unfair trade practices as adulteration
black marketing Etc…
 To inform them about new products.
 To handle the customer’s problems promptly.

9. Responsibility towards the
government.
 To respect the laws of the country.
 To pay taxes regularly and honestly.
 To adopt fair dealings in foreign trade inorder
to maintain country’s image.
 To cooperate with the govt. voluntarily in
solving national problems.
 To work and contribute towards the rescue
and relief work in case of flood,earthquake
Etc…

10. Responsibility towards the
community.
 To protect natural environment.
 To provide assistance to educational
institutions,religious institutions Etc…
 To generate more employment opportunities.
 To uplift the weaker sections of the society.

11. Case for social responsibility
 Justification for existence and growth.
 Long term interest of the firm.
 Avoidance of govt. regulations.
 Availability of resources with business.
 Better environment for doing business.
 Holding business responsible for social
problems.

12. Environmental protection and
business.
 NEED FOR POLLUTION CONTROL.
 Reduction in health hazards.
 Reduced risk of liability.
 Cost savings.
 Improved public image.
 Other social benefits.

13. Business ethics:
 MEANING:
 Ethics defines what is wrong and what is
right.An act, decision is ethical if it is in
conformity with prevailing norms and
standards of the society.
 Business ethics refers to the
sociallydeterminedmoral principals or
standardswhich dovern business activities.

14. A few examples of business
ethics are:
 Charging fair prices fro customers .
 Using fair weights for measurements of
commodities.
 Giving fair treatment to workers.
 Earning reasonable profits.
 Paying taxes to the govt. honestly.

15. Elements
 Top management commitment.
 Publication of a ‘code’.
 Establishments of compliance. mechanisms.
 Involving employees at all levels.
 Measuring results.

16. Thank you!