The document discusses business social responsibilities and environmental protection. It notes that businesses are permitted to operate for profit but have obligations to society to not engage in undesirable practices that harm society. Businesses should respect social values, supply quality goods, create healthy work conditions, prevent pollution, and attend to customer complaints. Regarding the environment, the document outlines various types of pollution caused by business activities and notes industry is a major polluter. It discusses the role of businesses in protecting the environment through commitments, policies, compliance, training, and assessing results.

1. MANOJ PATELMANOJ PATEL
ASSISTANAT PROFESSOR
JHUNJHUNWALA BUSINESS SCHOOL,JHUNJHUNWALA BUSINESS SCHOOL,
FAIZABADFAIZABAD
BUSINESS SOCIALBUSINESS SOCIAL
RESPONSIBILITIESRESPONSIBILITIES

2. A business enterprise should do business and earn money in ways that fulfill the
expectations of the society. Every individual living in society has certain
obligations towards society. He has to respect social values and norms of
behaviour. A business enterprise is
permitted by society to carry on industrial or commercial activities and thereby
earn profits. But it is obligatory on part of the business enterprise not to do
anything, that is undesirable from society’s point of view. Manufacture and sale of
adulterated goods, making
deceptive advertisements, not paying taxes which are due, polluting the
environment and exploiting workers are some examples of socially undesirable
practices which may increase the profit of enterprises but which have adverse
effect on society at large. On the other hand, supplying good quality goods,
creating healthy working conditions, honestly paying taxes prevention/installing
pollution devices in the factory, and sincerely attending to customer complaints
are examples of socially desirable practices which improve the image of
enterprises and also make them profitable. In fact, it is through socially
responsible and ethically upright behaviour that business enterprises can get
durable success.
IntroductionIntroduction

3. (i) Justification for existence and
growth
(ii) Long-term interest of the firm:
(iii) Avoidance of government
regulation:.
(iv) Maintenance of society:
(v) Availability of resources with
business:
(vi) Converting problems into
opportunities:
vii) Better environment for doing
business:
(viii) Holding business responsible
for social problems:
AGUMENT OF BUSINESSAGUMENT OF BUSINESS
RESPONSIBILITYRESPONSIBILITY

4. (i) Violation of profit maximisation
objective: According to this argument,
business exists only for profit maximisation.
Therefore, any talk of social responsibility is against
this objective. In fact, business can best
fulfill its social responsibility if it maximises profits
through increased efficiency and reduced costs.
(ii) Burden on consumers: It is argued that social
responsibilities like pollution control and
environmental protection are very costly and often
require huge financial investments. In such
circumstances, businessmen are likely to simply
shift this burden of social responsibility by charging
higher prices from the consumers instead of bearing
it themselves. Therefore, it is unfair to tax the
consumers in the name of social responsibility.
ARGUMENT AGAINS SOCIALARGUMENT AGAINS SOCIAL
RESPONSIBILITYRESPONSIBILITY

5. (iii) Lack of social skills: All social problems cannot be
solved the way business problems are solved. In fact,
businessmen do not have the necessary
understanding and training to solve social problems.
Therefore, according to this argument, social problems
should be solved by other specialised
agencies.
(iv) Lack of broad public support: Here the argument
is that the public in general does not like business
involvement or interference in social
programmes. Therefore, business cannot operate
successfully because of lack of public confidence and
cooperation in solving social problems.

6. (i) Threat of public regulation:
(ii) Pressure of labour movement:
iii) Impact of consumer consciousness:
(iv) Development of social standard
for business:
(v) Development of business education:
(vi) Relationship between social interest and business
interest:
(vii) Development of professional, managerial class:
REALITY OF SOCIALREALITY OF SOCIAL
RESPOSIBILITYRESPOSIBILITY

7. (a) Economic responsibility: A business
enterprise is basically an economic entity
and, therefore, its primary social
responsibility is economic i.e., produce goods
and services that society wants and sell them
at a profit. There is little
discretion in performing this responsibility.
(b) Legal responsibility: Every business has
a responsibility to operate within the laws of
the land. Since these laws are meant for the
good of the society, a law abiding enterprise
is a socially responsible enterprise as well.
KIND OF SOCIAL RESPONSIBILITYKIND OF SOCIAL RESPONSIBILITY

8. (c) Ethical responsibility: This includes the behaviour
of the firm that is expected by society but not codified in
law. For example, respecting the religious sentiments
and dignity of people while advertising for a product.
There is an element of voluntary action in performing
this responsibility.
(d) Discretionary responsibility: This refers to purely
voluntary obligation that an enterprise assumes, for
instance, providing charitable contributions to
educational institutions or helping the affected people
during floods or earthquakes. 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.

9. (i) Responsibility towards the shareholders or
owners: A business enterprise has the responsibility
to provide a fair return to the shareholders or
owners on their capital investment and to ensure the
safety of such investment. The corporate enterprise
on a company form of organisation must also provide
the shareholders with regular, accurate and full
information about its working as well as schemes of
future growth.
(ii) Responsibility towards the workers:
Management of an enterprise is also responsible for
providing opportunities to the workers for
meaningful work. It should try to create the right
kind of working conditions so that it can win the
cooperation of workers. The enterprise must respect
the democratic rights of the workers to form unions.
The worker must also be ensured of a fair wage and a
fair deal from the management.
SOCIAL RESPONSIBILTYSOCIAL RESPONSIBILTY
TOWARD DEFFRINT GROUPS:TOWARD DEFFRINT GROUPS:

10. (iii) Responsibility towards the consumers: Supply of right quality
and quantity of goods and services to consumers at reasonable prices
constitutes the responsibility of an enterprise toward its customers. The
enterprise must take proper precaution against adulteration, poor
quality, lack of desired service and courtesy to customers, misleading
and dishonest advertising, and so on. They must also have the right of
information about the product, the company and other matters having a
bearing on their purchasing decision.
(iv) Responsibility towards the government and community: An
enterprise must respect the laws of the country and pay taxes regularly
and honestly. It must behave as a good citizen and act according to the
well accepted values of the society. It must protect the natural
environment and should avoid bad, effluent, smoky chimneys, ugly
buildings dirty working conditions. It must also develop a
proper image in society through

11. Protection of the environment is a
serious issue that confronts business
managers and decision makers. 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 man-made resources
such as cultural heritage, socioeconomic
institutions and the people.
It is widely recognised that the quality
of the environment is fast deteriorating
particularly due to industrial activity.
This is a common sight around major
cities like Kanpur, Jaipur, Delhi,
BUSINESS AND ENVIRONMENT PROTECTIONBUSINESS AND ENVIRONMENT PROTECTION

12. It must be recognized that all sectors
of our society viz., industry,
government, agriculture, mining,
energy, transportation, construction,
and consumers generate waste. Wastes
contain pollutants which are the
materials of chemicals that have been
discarded during the process of
production or consumption. Pollution
is caused by these pollutants which are
released into the environment beyond
its assimilation capacity. Among the
various sources of pollution, industry
is a major generator of waste in terms
of both its quantity and toxicity.
Business activities such as production,
distribution, transport, storage,
consumption of goods and services are
known to be the most critical sources
COUSE OF POLLUTIONS:COUSE OF POLLUTIONS:

13. (i) Air pollution: Air pollution is the result of a combination of factors which
lowers the air quality. It is mainly due to carbon monoxide emitted by
automobiles which contributes to air pollution. Similarly, smoke and other
chemicals from manufacturing plants pollute the air. Resultant air pollution
has created a hole in the ozone layer leading to dangerous warming of
the earth.
(ii) Water pollution: Water becomes
polluted primarily from chemical and
waste dumping. For years, business
enterprises have been dumping waste
into rivers, streams and lakes with little
regard for the consequences. Water
pollution has led to the death of several
animals and posed a serious threat to
human life.

14. (iii) Land pollution: Dumping of toxic wastes on land causes land pollution.
This damages the quality of land making it unfit for agriculture or plantation.
Restoring the quality of the land that has already been damaged is a big problem.
(iv) Noise pollution: Noise caused by
the running of factories and vehicles
is not merely a source of annoyance
but is also a serious health hazard.
Noise pollution can be responsible
for many diseases like loss of hearing,
malfunctioning of the heart and
mental disorder.

15. (i) A definite commitment by top management of the enterprise to create, maintain and develop
work culture for environmental protection and pollution prevention.
(ii) Ensuring that commitment to environmental protection is shared throughout the enterprise by
all divisions and employees.
(iii) Developing clear-cut policies and programmes for purchasing good quality raw materials,
employing superior technology, using scientific techniques of disposal and treatment of wastes and
developing employee skills for the purpose of pollution control.
(iv) Complying with the laws and regulations enacted by the Government for prevention of
pollution.
(v) Participation in government programmes relating to management of hazardous substances,
clearing up of polluted rivers, plantation of trees, and checking deforestation.
(vi) Periodical assessment of pollution control programmes in terms of costs and benefits so as to
increase the progress with respect to environmental protection.
(vii) Arranging educational workshops and training materials to share technical information and
experience with suppliers, dealers and customers to get them actively involved in pollution control
programmes.
ROLE OF BUSINESS IN ENVIRONMENTROLE OF BUSINESS IN ENVIRONMENT
PROTECTIONPROTECTION

16. (i) Top management commitment:
(ii) Publication of a ‘Code
(iii) Establishment of compliance
mechanisms:
(iv) Involving employees at all
levels:
(v) Measuring results:
ELEMENT OF BUSINESS ETHICSELEMENT OF BUSINESS ETHICS