Answer in brief
1) Give any four types of social responsibilities towards consumers.
Ans: Social responsibility of the commercial organizations. Towards consumers are as follows:
1) Good Quality Products: The organization should produce quality goods. Every organization should have its quality control department so inferior and substandard products can be rejected. International Standard Organization (ISO), is the latest trend towards quality control. This ensures customers about quality products.
2) Fair Prices: The consumers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Fair price converts a one-time consumer into a permanent consumer. Maximum Retail Price (M.R.P.) inclusive of all taxes should be printed on every packet. The retailer should not charge any extra amount.
3) Customer’s Safety: The business must ensure that the product supplied will not adversely affect the life and health of the customers. Unsafe products should not be marketed. The consumer should be warned of any unsafe goods.
4) Honest Advertising: The consumers want to know the facts, features, advantages, side-effects, etc. of the products. The advertisement conveys this information. So the organization must be sure that the advertisement is not being misleading. The false, misleading, and vulgar advertisement should be avoided. Consumers will appreciate only honest advertisements in the long run.
2) What is business ethics? What are the elements of business ethics?
Ans : The word ‘Ethics’ is derived from the Greek word ‘Ethos’ which means character.
Ethics means the set of rules and principles that the organization should follow while the business ethics refer to a code of conduct that businesses are expected to follow while doing business. Through ethics, a standard is set for the organization to regulate their behavior. This helps them in distinguishing between the wrong and the right path of the business. Ethics is a branch of social science.
Elements of business ethics are as follows:
1) Code of conduct: Business ethics is a code of conduct. It tells what to do and what not to for the welfare of the society. All businessmen must follow this code of conduct.
2) Based on moral and social values: It contains moral and social principles (rules) for doing business. This includes self-control, consumer protection, and welfare, service to society, fair treatment to the social groups not to exploit others, etc.
3) Gives protection to social groups: Business ethics give protection to different social groups such as consumers, employee small businessmen, government, shareholders, creditors, etc.
4) Provides basic framework: It gives the social, cultural, economic, legal, and other limits of business. Business must be conducted within these limits.
5) Voluntary: The businessmen must accept business ethics on their own. Business ethics must be like self-discipline. It must not be enforced by law.
6) Requires education and guidance: Businessmen must be given proper education and guidance before introducing business ethics. The businessman must be motivated to implement business ethics.
7) Relative term: Business ethics change from business to business. It also changes from one country to another. What is considered good in one country may be banned in another country.
8) New concept: Business ethics is a newer concept. It is strictly followed only in developed countries and not in poor and developing countries.
3) State responsibilities of business towards the government.
Ans :Responsibilities Towards Government:
The following are the responsibilities of the organization towards the government.
1) Timely Payment of Taxes: The government imposes various types of taxes like sales tax, income tax, wealth tax etc. Business units should pay these taxes from time to time. It would be difficult for the government to undertake development projects without availability of funds
2) Observing rules and regulations: The rules framed by the government for business should be fully complied with. The business should follow the laws regarding obtaining a license for a specified business, the operation of the business, price determination and production, etc. They should conduct business in a lawful manner.
3) Earning Foreign Exchange: The government also expects from a business organizations that it will earn foreign exchange by exporting goods. The government requires this foreign exchange for importing various goods. valuable and important products.
4) Economic Development: The government sets the targets for the balanced and rapid economic development of the country. The business organization should provide necessary cooperation to the government.
5) Implementing Socio-Economic Policies: The government expects cooperation and help from the business sector in implementing socio-economic programs and policies.
6) Suggestions to the Government: The business organization can provide suggestions to the government before framing important policies such as Industrial Policy, Import-Export Policy, Licensing Policy, etc. Such suggestions are helpful for framing organization-friendly policies.
7) No favours: The commercial organization should not take any favor from the government officials by bribing or influencing them.
8) Contributing to Government Treasury: The Commercial organization must contribute the funds to the government during the emergencies and natural calamities like floods, earthquakes, etc.
4) State any four CSR activities.
Ans : The following are some of the CSR activities.
(i) Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation & making available safe drinking water.
(ii) Promoting education, including special education & employment enhancing vocation skills, especially among children, women, elderly & the differently-abled & livelihood enhancement projects. Employment enhancing vocational skills.
(iii) Measures for the benefit of armed forces veterans, war widows & their dependents.
(iv) Rural development projects, etc
(v) Slum area development.