Grade 11 Chapter 6 - Social Responsibilities of Business.pptx

Social responsibility

1. Class 11 Business Studies

2. Chapter - 6 SOCIAL RESPONSIBILITIES OF BUSINESS & BUSINESS ETHICS

3. Social Responsibility No business can survive without the support of society Therefore, it has some responsibilities to the society

4. Social Responsibility Social responsibility means the obligations of the businessmen which are desirable in terms of the objectives and values of our society

5. Arguments for Social Responsibility 1 Existence and growth Prosperity and growth of business is possible only through rendering continuous service to society

6. Arguments for Social Responsibility 2 Long term interest of the firm A firm and its image stands to gain more profits in the long run when it accepts service as the highest goal Supporting social goals enhances public image of any firm

7. Arguments for Social Responsibility 3 Avoidance of government regulations Businessman should voluntarily assume social responsibilities, so that they can avoid government regulations. Eg: Environmental pollution

8. Arguments for Social Responsibility 4 Maintenance of society If the people feel that they are not getting their due from the business, they will not support such business organisations

9. Arguments for Social Responsibility 5 Availability of resources with business Available resources with the business such as managerial talent and financial resource can be utilized to solve the problems of the society when it is needed

10. Arguments for Social Responsibility 6 Converting problems into opportunities Business is always looking for converting risky situations to opportunities, this quality can be utilized for solving the problems in the society

11. Arguments for Social Responsibility 7 Better environment for doing business A society with fewer problems and complaints provides better environment for the business

12. Arguments for Social Responsibility 8 Holding business responsible for social problems Some of the social problems such as pollution, unsafe work environment, discrimination in employment etc. are created by business enterprises themselves, so that it is their moral obligation to solve them

13. Arguments Against Social Responsibility 1 Violation of objective Business is an economic entity and its main objective is profit maximization If the business organizations are engaged in social activities their profit will be reduced It will affect the success of business

14. Arguments Against Social Responsibility 2 Burden on consumers The cost of social responsibility will be shifted to the consumers by charging higher prices

15. Arguments Against Social Responsibility 3 Lack of social skill It is an argument that the business people have no skill to take up social work as they are always engaged in business activities

16. Arguments Against Social Responsibility 4 Lack of public support Public usually do not like business interference in social programs, so that they cannot operate successfully in such areas

17. Reality of Social Responsibility 1 Threat of public regulation When business enterprises act in a socially irresponsible manner, government will act by regulating them for safeguarding public interest

18. Reality of Social Responsibility 2 Pressure of labour movement Labour movement has become very powerful now-a- days, so that the businessmen are forced to protect the interest of the workers

19. Reality of Social Responsibility 3 Consumer consciousness Business enterprises have started customer oriented policies as they are aware about their rights and privileges

20. Reality of Social Responsibility 4 Development of social standard for business Newly developed social standards consider only legitimate economic activities along with serving the society Then only the business can survive and grow

21. Reality of Social Responsibility 5 Development of business education Because of development of business education, people are aware of the social purpose of business

22. Reality of Social Responsibility 6 Relationship between social interest and business interest Businessmen have realized that social interest and business interest are not contradictory, but they are complementary to each other

23. Reality of Social Responsibility 7 Development of professional managerial class Professional management education has created a class of professional managers who have got a positive attitude towards the social responsibility as compared to the earlier class of owner managers

24. Kinds of Social Responsibility 1 Economic responsibility Since the business is an economic entity, it has to produce goods and services that society wants and sells them at a profit

25. Kinds of Social Responsibility 2 Legal responsibility Business enterprises have the responsibility to operate within the laws of the country

26. Kinds of Social Responsibility 3 Ethical responsibility It refers to the moral principles to be followed by the businessmen in relation to the society Eg: Protecting religious sentiments and dignity of people while advertising a product

27. Kinds of Social Responsibility 4 Discretionary responsibility This is voluntary obligation of a business enterprise Eg: giving charity to an educational institution, helping people in natural calamities etc.

28. Social Responsibility towards different interest groups 1 Owners a)Safety of investment. b)Adequate return on investment. c)Accurate financial information should be provided.

29. Social Responsibility towards different interest groups 2 Employees a)Fair wages b)Job security c)Promotion opportunities d)Welfare measures e)Better working conditions. f)Participation in management.

30. Social Responsibility towards different interest groups 3 Consumers a)Regular supply of commodities. b)Better quality c)Reasonable Price d)Avoidance of unfair trade practices.

31. Social Responsibility towards different interest groups 4 Suppliers a) Better relationship b) Prompt payment.

32. Social Responsibility towards different interest groups 5 Government and Community a)Lawful business. b)Prompt payment of tax. c)Help the government in socio-economic development(employment opportunities, literacy, poverty etc.) d)Optimum use of natural resources. e)Concentrate in safety and welfare of the people. f)Control pollution as far as possible.

33. Business and environmental protection The health and well being of people depends on the quality of environment in which they live and work Better Environment

34. Business and environmental protection Rapid industrialization and growing traffic have caused a great damage to the environment

35. Business and environmental protection Pollution is the injection of harmful substances into the environment largely because of industrial production It changes the physical, chemical and biological characteristics of air, water and land

36. Causes & Type of Pollution 1 Air Pollution It is the contamination of air by the accumulation of harmful or toxic substances which will create serious health problems to living organisms, monuments etc.

37. Causes & Type of Pollution 2 Water Pollution Water is said to be polluted when it is changed in the quality as a result of waste disposal and other human activities, so that it become less suitable for drinking

38. Causes & Type of Pollution 3 Land / Soil Pollution It may be due to the dumping of non-degradable waste material into the land from industrial units, hospitals, hotels, dwelling units etc. This damages the quality of soil making it unfit for cultivation

39. Causes & Type of Pollution 4 Noise / Sound Pollution It may cause damages to the human body and mind, the smooth functioning of hospitals, educational institutions etc. Industrial units, Automobiles etc. are the major sound pollutants

40. Reasons / Need for Pollution Control 1 Reduction of health hazards Major diseases like cancer, heart attacks etc. are caused by pollutants in the environment Pollution control measures only can prevent such diseases up to a certain extent

41. Reasons / Need for Pollution Control 2 Reduce risk of liability In case a disaster has been taken place, the entire liability should be borne by the enterprise E.g. Union Carbide Tragedy in Bhopal

42. Reasons / Need for Pollution Control 3 Cost savings Effective pollution control strategy helps to reduce cost of operating business If they use improper technology with greater wastes leading to high waste disposal cost

43. Reasons / Need for Pollution Control 4 Public image A business enterprise which follows good pollution control measures can enjoy good reputation in the society

44. Reasons / Need for Pollution Control 5 Other social benefits It includes clear visibility, clean buildings and monuments, quality life and availability of pure natural products Taj Mahal

45. Role of business in environmental protection 1 Work culture Top management should create a work culture for environmental protection and pollution control

46. Role of business in environmental protection 2 Ideas and information to employees Share the ideas and technical information regarding environmental protection among the employees

47. Role of business in environmental protection 3 Good quality materials Use good quality materials to reduce environmental pollution

48. Role of business in environmental protection 4 Modern Technology Adopt modern technology

49. Role of business in environmental protection 5 Rules and regulations Follow the rules and regulations by the government

50. Role of business in environmental protection 6 Scientific methods Adopt scientific methods of waste management

51. Role of business in environmental protection 7 Support in Govt. Programs Support in government programs like clearing up of polluted water sources, plantation of trees, checking deforestation etc.

52. Role of business in environmental protection 8 Timely assessment Timely assessment of pollution control programs

53. Business Ethics The word “ethics” derived from the Greek word “ethos” which means character or sentiments of community Ethics specifies what is good or bad, fair or unfair, right or wrong

54. Business Ethics Business ethics refers to the moral principles followed by a businessman in his dealings with the people Eg: Better quality, fair price, justice, courage, thrift etc.

55. Business Ethics Business ethics helps to win the confidence of customers which will ensure the prosperity and progress of the business

56. Ethical Business Practices 1 Fair and Reasonable Price

57. Ethical Business Practices 2 Correct weight and measures

58. Ethical Business Practices 3 Prompt payment of tax Disclose actual profit and prompt payment of tax

59. Ethical Business Practices 4 Fair treatment to the employees

60. Ethical Business Practices 5 Sale of genuine products

61. Ethical Business Practices 6 Reasonable profit

62. Ethical Business Practices 7 No bribes

63. Examples of ethical business practices: ● Fair and reasonable price ● Correct weight and measures ● Prompt payment of tax ● Fair treatment to the employees ● Sale of genuine products to customers ● Take reasonable profit ● No bribes

64. Examples of unethical business practices

65. Unethical Business Practices 1 Adulteration

66. Unethical Business Practices 2 Poor quality

67. Unethical Business Practices 3 Black marketing and Hoarding

68. Unethical Business Practices Misleading advertisement

69. Unethical Business Practices 5 Fake goods

70. Unethical Business Practices 6 Deceptive packing

71. Unethical Business Practices 7 Pollution of environment

72. Unethical Business Practices 8 Exploitation of workers

73. Common unethical business practices: ● Adulteration ● Poor quality ● Black marketing and hoarding ● Misleading advertisements ● Fake goods ● Deceptive packaging ● Pollution of environment ● Exploitation of workers

74. Elements of Business Ethics 1 Top Management Commitment The top level managers need to be openly strong in ethical matters, so that they can guide their organization towards ethically upright behaviour

75. Elements of Business Ethics 2 Publication of a “Code” Code means a written document which contains the moral principles to be followed by the organization Eg: Honesty, adherence to laws, quality, health and safety in workplace, employment practices fairness in selling etc.

76. Elements of Business Ethics 3 Compliance Mechanism A suitable mechanism should be introduced to ensure that actual decisions and practices comply with firm’s ethical standards Eg: Paying attention to values and ethics in recruiting employees

77. Elements of Business Ethics 4 Involving Employees at all Levels Involvement of employees in all the levels in ethical programs is a must, then only they can do accordingly Eg: Conducting a group discussion among the employees in small groups to discuss the ethical policies to be followed in the firm

78. Elements of Business Ethics 5 Measuring Results The firm can monitor the actual performance with ethical standards and they can take necessary steps for further course of action

79. THANK YOU