Kerala Plus One Business Studies Chapter Wise Previous Questions Chapter 6 Social Responsibilities of Business and Business Ethics
Question 1.
It is related to social responsibility in business. It is the belief in what fs right, proper and just in business. Which term represents the above mentioned qualities? (June – 2008)
Answer:
Business ethics
Question 2.
“Social responsibility and business ethics are the two sides of the same coin.” Being a commerce student as well as a citizen, how will you comment on this statement? (June – 2008)
Answer:
Social Responsibilities & Ethics of business
Business ethics and social responsibilities are closely related. When a business is ethical, it naturally meets its social responsibilities. It is doing justice to all concerned and protecting the business value system. As a socially responsible organization, a business has to follow ethical values towards employees, consumers, gqvernment, society etc. Thus social responsibility and business ethics are the two sides of the same coin.
Question 3.
“Industrial revolution results in mass producing and higher living standards, but it equally damages the environment”. (March – 2009)
a) Do you agree with this statement?
b) Briefly explain the type of environmental damages.
Answer:
a) Yes
b) Types of environmental pollutions:-
Business & Environmental Protection Causes of Pollution Many industrial organisations have been responsible for causing air, water, land and noise pollution.
1. Air Pollution – Air pollution is mainly due to Carbon monoxide emitted by automobiles and smoke and other chemicals from manufacturing plants. It has created a hole in the ozone layer leading to global warming.
2. Water pollution – Water becomes polluted primarily from chemical and waste dumping.. It has led to the death of several animals and posed a serious problem to human life.
3. Land Pollution – Dumping of toxic wastes reduces the quality of land and making it unfit for agriculture or plantation.
4. Noise Pollution – Noise caused by the running of factories and vehicles create a serious health hazard such as loss of hearing, malfunctioning of the heart and mental disorders.
Question 4.
Ramamoorthy inherited a business due to the death of his father. His mother advised him to observe ethics in business. Support Mr. Ramamoorthy by mentioning the meaning of business ethics. (March – 2009)
Answer:
Business Ethics
Ethics is the belief in what is right, proper and just. It is the study of morality and moral choices. Business ethics refer to the socially determined moral principles which should govern business activities. Business ethics is the code of conduct followed and performed by all business men. Ethical business is good business.
Ethical business behaviour improves public image, earns people’s confidence and trust, and leads to greater success. Examples:- Charging fair prices from customers, Using fair weights for measurement of commodities, Giving fair treatment to workers, Earning reasonable profits.
Question 5.
Which of the following is not a social responsibility of business? (March – 2009)
a) Keeping pollution free
b) Making excessive profits by any means
c) Giving reasonable wages to workers
d) Giving taxes to Government
Answer:
Making excessive profit in any means
Question 6.
Pattambi Club decided to conduct an exhibition on the subject, ‘Social Responsibility of business towards owners and employees’. Specify the various responsibilities to these groups with the help of two charts. (March – 2010)
Answer:
i) Responsibility towards the owners: A business enterprise has the responsibility to provide a fair return to the owners on their capital investment and to ensure the safety of such investment. The business should inform the owners about the progress of the business.
ii) Responsibility towards the workers: It is the social and moral responsibility of the business to pay reasonable wages and salaries to employees. They must be provided good working conditions, security of the job, medical benefits and so on. The enterprise must respect the democratic rights of the workers to form unions.
iii) Provide fair return to the owners Ensure safety of investment Inform about the financial position of the business Inform about the working conditions of the business Pay reasonable wages / salaries Provide good working conditions Provide various welfare measures Participate in decision making process.
Question 7.
One among the following does not come under social responsibilities of business. Find that one: (March – 2011)
a) Keep the environment pollution free
b) Give fair wages to workers
c) Offer quality products
d) Make huge profits by any means.
Answer:
Make huge profits by any means
Question 8.
Mohanlal, the owner of a newly started business, is badly in need of first-hand knowledge about business ethics. How can you help him? (March – 2011)
Answer:
Business ethics is the application of general ethical rules and principles to business practices. Example of business ethics are: charging fair prices from customers, avoiding unfairtrade practices, giving fair treatment to workers and earning only reasonable profits.
Question 9.
“Look after your customers and the rest will follow”. In the light of the above statement, mention any three responsibilities of a business firm towards its customers. (March – 2011)
Answer:
a) Supply of right quality and quantity of goods and services to consumers at reasonable prices.
b) They have the right of information about the product, price, the company etc.
c) Avoiding unfairtrade practices like adulteration, poor quality, misleading and dishonest advertising etc.
Question 10.
A medical shop in your locality decides to use paper bags instead of plastic covers. Comment on the situation in the light of social responsibility of a business. (March – 2012)
Answer:
It is the responsibility of every business concern to protect the environment from pollution. The use of plastic materials creates a lot of health problems in the society. Every business organization must promote eco friendly products.
Question 11.
A business has a responsibility towards the owners on one side and the society on the other. These are like the two sides of a coin. Mention the major responsibilities of a business towards these interest groups. (March – 2012)
Answer:
Social Responsibility towards different interest groups
1. Responsibility towards share holders or owners :-
- Provide a fair and regular return on the investment of shareholders.
- Provide regular and accurate information on the financial position of the firm.
- To ensure the safety of their investment.
2. Responsibility Towards the workers :-
- Providing fair wages
- Providing good working conditions and welfare amenities.
- Respect democratic rights of workers to form unions.
3. Responsibility toward consumers :-
- Supply right quality and quantity of goods and services at reasonable prices.
- Avoding unfairtrade practices like adulteration, poor quality, misleading advertisement etc.
- Inform them about new products, its features, uses and other matters relating to the products.
- To handle the customers grievance promptly.
4. Responsibility Towards Government :-
- Respect the laws of the country
- Pay taxes regularly and honestly.
- act according to the well accepted values of the society.
5. Responsibility towards community :-
- Make employment opportunities
- Protect the environment from pollution.
- To uplift the weaker sections of society
Question 12.
Arun and Neena joined a factory as peons on the same day. Both of them are doing 8 hours’work in a day. Arun paid ₹ 300 while Neena is paid ₹ 250 per day. Do you think the owner of the factory is fair to Neena? If not, give your opinion. (March – 2013)
Answer:
No. The owner of the factory is not fair to Neena. It is the social and moral responsibility of the business to offer equal pay for equal work with out considering any caste, sex etc.
Question 13.
Adarsh, a 12 years old boy is working in a cracker manufacturing factory. Whereas his friends are studying in school. As a human activist, identify any two human right violations. (October – 2013)
Answer:
Excessive work without rest, harassment at work place.
Question 14.
In a classroom debate Athul says that the business has responsibility only to owners. But Mithun argues that there are different interested groups towards which a business is responsible. (October – 2013)
a) Whose argument is correct.
b) Substantiate your answer.
Answer:
Mithun. Responsibilities of a business towards different groups
Social Responsibility towards different interest groups
1. Responsibility towards share holders or owners:-
- Provide a fair and regular return on the investment of shareholders.
- Provide regular and accurate information on the financial position of the firm.
- To ensure the safety of their investment.
2. Responsibility Towards the workers:-
- Providing fair wages
- good working conditions and welfare amenities.
- Respect the democratic rights of workers to form unions.
3. Responsibility toward consumers:-
- Supply right quality and quantity of goods and services at reasonable prices.
- Avoding unfairtrade practices like adulteration, poor quality, misleading advertisement etc.
- Inform them about new products, its features, uses and other matters relating to the products.
- To handle the customers grievance promptly.
4. Responsibility Towards Government:-
- Respect the laws of the country
- Pay taxes regularly and honestly.
- act according to the well accepted values of the society.
5. Responsibility towards community:-
- Make employment opportunities
- Protect the environment from pollution.
- To uplift the weaker sections of society
Question 15.
Environmental protection can best be done by the efforts of the ………….. (March – 2014)
a) business people
b) governments
c) scientists
d) all the people
Answer:
All the people
Question 16.
Hari, a 12 year old boy, is working in a coal mine. His friends go to school everyday. But he is doing dangerous work in the coal mine. As a human rights activist, what will be your response? Explain. Can you name one more such violation? (March – 2014)
Answer:
It is the Violation of Human Rights.
Eg: Excessive work without rest.
Question 17.
A group discussion is scheduled in your class on “Environmental Pollution and Business”. A a group leader, explain any four major causes of environmental pollution. (March – 2014)
Answer:
Causes of environmental Pollution:
Business & Environmental Protection Causes of Pollution Many industrial organisations have been responsible for causing air, water, land and noise pollution.
1. Air Pollution – Air pollution is mainly due to Carbon monoxide emitted by automobiles and smoke and other chemicals from manufacturing plants. It has created a hole in the ozone layer leading to global warming.
2. Water pollution – Water becomes polluted primarily from chemical and waste dumping.. It has led to the death of several animals and posed a serious problem to human life.
3. Land Pollution – Dumping of toxic wastes reduces the quality of land and making it unfit for agriculture or plantation.
4. Noise Pollution : Noise caused by the running of factories and vehicles create a serious health hazard such as loss of hearing, malfunctioning of the heart and mental disorders.
Question 18.
The concept where a businessman himself ensures the supply of quality products to his consumers is called ………… (August – 2014)
Answer:
Social responsibility
Question 19.
Mention any two responsibilities of a business to the owners. (August – 2014)
Answer:
a) Provide a fair and regular return on the investment of shareholders.
b) Provide regular and accuratoinformation on the financial position of the firm.
Question 20.
Industries contribute a lotto environmental pollution. Describe the causes of environmental pollution created by industries. (August – 2014)
Answer:
Business & Environmental Protection Causes of Pollution Many industrial organisations have been responsible for causing air, water, land and noise pollution.
1. Air Pollution – Air pollution is mainly due to Carbon monoxide emitted by automobiles and smoke and other chemicals from manufacturing plants. It has created a hole in the ozone layer leading to global warming.
2. Water pollution – Water becomes polluted primarily from chemical and waste dumping.. It has led to the death of several animals and posed a serious problem to human life.
3. Land Pollution – Dumping of toxic wastes reduces the quality of land and making it unfit for agriculture or plantation.
4. Noise Pollution : Noise caused by the running of factories and vehicles create a serious health hazard such as loss of hearing, malfunctioning of the heart and mental disorders.
Question 21.
Eco Travel Ltd, contributes Rs. 50,000 to the Endosulfan relief fund. This social responsibility is a part of a/an ……… (March – 2015)
a) economical responsibility
b) discretionary responsibility
c) legal responsibility
d) ethical responsibility
Answer:
Discretionary responsibility
Question 22.
“Business is essentially a social institution and not merely a profit making entity”. In the light of above statement, explain the relevance of social responsibility of a business. (March – 2015)
Answer:
Arguments in favour of Social Responsibility :
1. Justification for Existence and Growth: The prosperity and growth of business is possible only through continuous service to society.
2. Long term Interest of the firm : A firm can improve its image and builds goodwill in the long run when its highest goal is to serve the society .
3. Avoidance of government regulations: Business can avoid the problem of government regulations by voluntarily assuming social responsibilities.
4. Maintenance of society: Law alone can’t help out people with ail the difficulties they face. A socially responsible business can contribute something for social peace and harmony.
5. Availability of resources with business :- Business has valuable financial and human resources which can be effectively used for solving problems of the society.
6. Better environment for doing business : Social responsibility creates better environment for business operations as it improves quality of life and standard of living of the people.
7. Contribution to social problems : Some of the social problems have been created by business firms themselves such as pollution, unsafe work places, discrimination etc, Therefore, it is the moral obligation of business to solve such social problems.
Question 23.
Which among the following alternatives is NOT a case of unethical element? (Say – 2015)
a) Child labour
b) Dumping waste into rivers
c) Adulteration
d) Pay tax honestly
Answer:
Pay tax honestly
Question 24.
What do you mean by soical responsibility of business? Explain the different kinds of social responsibilities. (Say – 2015)
Answer:
Social Responsibility towards different interest groups
1. Responsibility towards share holders or owners:-
- Provide a fair and regular return on the investment of shareholders.
- Provide regular and accurate information on the financial position of the firm.
- To ensure the safety of their investment.
2. Responsibility Towards the workers:-
- Providing fair wages
- Providing good working conditions and welfare amenities.
- Respect democratic rights of workers to form unions.
3. Responsibility toward consumers:-
- Supply right quality and quantity of goods and services at reasonable prices.
- Avoding unfairtrade practices like adulteration, poor quality, misleading advertisement etc.
- Inform them about new products, its features, uses and other matters relating to the products.
- To handle the customers grievance promptly.
4. Responsibility Towards Government:-
- Respect the laws of the country
- Pay taxes regularly and honestly.
- act according to the well accepted values of the society.
5. Responsibility towards community:-
- Make employment opportunities
- Protect the environment from pollution.
- To uplift the weaker sections of society
Question 25.
Goodwill agencies provide quality products by charging reasonable prices eventhough majority of their customers are illiterate. The business concept referred here is (March – 2016)
Answer:
Business ethics/social responsibility (Business ethics is part of social responsibility)
Question 26.
Write one social responsibility of a business towards the owners. (March – 2016)
Answer:
Fair return/safety of investment providing regular, accurate and full information about its working)
Question 27.
The management of Thottam Plantations decided to set apart 10% of their profits for the education of students belonging to weaker sections. Identify the type of social responsibility referred here. Also write three points of arguments for social responsibility. (March – 2016)
Answer:
Discretionary responsibility.
Any 3 arguments in favour of social responsibility.
- Justification for Existence and Growth: The prosperity and growth of business is possible only through continuous service to society.
- Long term Interest of the firm : A firm can improve its image and builds goodwill in the long run when its highest goal is to serve the society.
- Avoidance of government regulations: Business can avoid the problem of government regulations by voluntarily assuming social responsibilities.
Question 28.
State any three responsibilities of business towards the consumers. (September – 2016)
Answer:
i) Supply right quality and quantity of goods and services at reasonable prices.
ii) Avoding unfair trade practices like adulteration, poor quality, misleading advertisement etc.
iii) Inform them about new products, its features, uses and other matters relating to the products.
Question 29.
“Fulfilling social responsibilities is very important for every business for its survival”. Support the above statement by describing any three reasons. (September – 2016)
Answer:
Arguments Against Social Responsibility:
1. Violation of profit maximization objective:
According to this argument, business exists only for the maximum profit to its shareholders and do not have responsibility to the society as a whole.
2. Burden on consumers – Involvement of business in social responsibilities involve a lot of expenditure which will ultimately be borne by the customers.
3. Lack of Social Skills: The business firms and managers are not expert to tackle the social problems like poverty, over population etc.
4. Lack of public support: business cannot fulfill social responsibility because of lack of public confidence & cooperation.
Question 30.
One of the following is against the business ethics. Find it. (March – 2017)
a) Charging fair price for the product
b) Giving wages to employees by not considering their work load
c) Using correct measurement for products
d) Giving chances to hear the problems of employees
Answer:
Giving wages to employees by not considering their work load.
Question 31.
Explain how the business units make land pollution. (March – 2017)
Answer:
Dumping of toxic wastes on land causes land pollution. Business units dump waste materials after manufacturing process on land.
Question 32.
Give a brief note about the social responsibility of business. (March – 2017)
Answer:
Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society. Social responsibility