Justify the following statement
1) The role of the media has a major influence on business organizations.
Ans : Media refers to the various means used by advertisers to inform the public about the products or services. The mass media include the press, social media, radio, and television. Active media plays a crucial role in the life of the people. Through the internet, the reach of social media to common people has become very easy.
Media has the efficiency to disburse any information, wrong policy, unfair trade practice adopted by any business organization at a very fast pace to the public at large that too at every corner of the world. The media is very vibrant and active.
Media connects the people and creates an influence on the masses. It can make propaganda (or raise voice) against business malpractices and exploitation of consumers. It can do publicity through the repetition of messages by different means.
Newspapers, radio, television, the internet, social media, etc. can easily give publicity to unfair practices of business organizations. So, the media makes business organizations understand social values and exerts major influence.
2) The business should allow workers to participate in management.
Ans :Workers are the real architects of success in any business unit. Investments in human resources (capital) gives rich rewards in the long run.
The success and failure of the business organizations to a greater extent depend on the support and participation of employees. Therefore, business organizations should encourage workers to participate in management through various schemes like giving suggestions, saving costs. quality circles, profit sharing co-ownership, etc. When workers are given the opportunity to participate in the management, it will raise their morale. This in turn will give the workers a sense of belongingness. They will take an active part in the completion of the work assigned to them. Workers’ participation in management enables the organization to win the confidence of employees. It creates and maintains a good, healthy, and improved relationship between labor and management which is necessary for the success of any organization.
3) Expectations of society towards business are changing.
Ans :Today the world is changing and expanding very fast. Social demands have changed gradually over the years. The business has to respond to them positively. Now the people all over the globe are well aware of their rights. The overall knowledge level has also increased. In order to fulfill the growing needs of the people, the business firm must operate as per the expectations of society. Business units must give society what it actually wants. Consumer satisfaction is the ultimate purpose of business activities. A business organization must give priority to consumer satisfaction over profit motive. Its survival, progress, and reputation depend upon consumer satisfaction. It must win the confidence of its customers by giving them useful services. Business organizations are expected to action broad public interest and serve the objectives of mankind and society at large along with the objectives of earning profit. It must provide quality products to society at reasonable prices and above all contribute to social welfare.
4) Business organizations should avoid environmental pollution and ecological imbalance.
Ans : The functioning of business units and industrialization creates air, water, and sound pollution. The carbon particles, dust, harmful gases, chemicals, etc. create air pollution. Harmful chemicals, untreated sewage, industrial waste, fertilizers, pesticides, refuse, e-waste, etc. when get mixed with water, creates water pollution. Airplanes, motor vehicles, construction machines, and industrial equipment create sound pollution. The business organizations are expected to take all possible measures to prevent air, water, and sound pollution and to maintain the ecological balance. For the well-being of society, every organization should assist the concerned organizations engaged in pollution control programs such as plantation of trees, preservation of wildlife, and natural resources.
Protecting the environment and maintaining the ecological balance in the following manner:
(i) Business organizations save costs and money by minimizing waste.
(ii) Business organizations that follow green practices (plantation of more and more trees) get support from customers.
(iii) Business organizations that take precautions to protect the environment create awareness among employees.
(iv) Protection of the environment process cut carbon emissions and create conditions for green growth which is beneficial to society.
(v) Business organizations showing awareness of environment protection get support and encouragement from the government. Thus, business organizations should avoid environmental pollution and ecological imbalance.
5) All sorts of unfair practices related to stock exchange should be avoided.
Ans : The persons who provide finance for the short term as well as for the long term to the company are called owners or investors. They invest their money and accept the risk factors. Management is expected to provide full and factual information about the financial performance of the company to the owners and investors. The Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating and maintaining the interests of investors in the securities market. Law prohibits any sort of activity that is manipulative or unfair in the securities market. Thus, business organizations must avoid unfair practices related to stock exchange like insider trading providing wrong and secret information about buying/selling or dealing with securities, etc. Any breach in the above-mentioned practices may be considered unlawful and be made accountable by SEBI. Therefore, a business organization should consider responsibilities toward the owners and should avoid all sorts of unfair practices related to the stock exchange.
6) Business ethics contains moral and social values for doing business.
Ans : Business Ethics refers to the code of conduct that a business organization is expected to follow while doing business. According to “Wheeler’, “Business ethics is an art or science of maintaining a harmonious relationship with society, its various groups, and institutions as well as recognizing the moral responsibility for right or wrong conduct of business.’ ” Moral values are based on perceptions of right and wrong. They provide the general guidelines for distinguishing between wrong and right path of business, between good and bad, fair and unfair, just and unjust, legal and illegal, proper and improper in respect to human actions. Ethics contain moral values for doing business, Honesty, transparency, fairness, integrity, etc. are moral values that create goodwill and gives an economic gain in the long run. Social values form an important part of the culture of the society. They provide general guidelines for social conduct. Values such as fundamental rights, patriotism, respect for human dignity, rationality, sacrifice, equality, democracy, etc. influence our behavior in many ways. These social values made the business socially acceptable. As business is a part of society, it can be successful in the long run by adopting social values.
7) Business ethics can be considered as a tool for social development.
Ans :Business ethics is a code of conduct that evolved for regulating the activities of business towards society and others. It calls for the importance of fair treatment to be given to the consumers, workers, suppliers, shareholders, competitors, government, and the community at large. Business ethics promote the principles of honesty, sincerity, fairness, justice in business dealings. It protects the interests of all the constituents of society. It creates a healthy and competitive business atmosphere. It induces businessmen to introduce social security and welfare measures. The businessmen promote activities enhancing the cultural values of the society. Thus, business ethics, if practiced by businessmen in the right spirit, can be considered as a tool for social development.