Contents 2. Environmental protection – Causes of pollution – Need for pollution control – Role of business in environmental protection<\/p>\n 3. Business Ethics – Meaning – Elements of Business Ethics 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 involves an element of voluntary action on the part of business people for the benefit of society.<\/p>\n Arguments in favour of Social Responsibility:<\/span> 2. Long term Interest of the firm: 3. Avoidance of government regulations: 4. Maintenance of society: 5. Availability of resources with business: 6. Better environment for doing business: 7. Contribution to social problems: Arguments Against Social Responsibility:<\/span> 2. Burden on consumers: 3. Lack of Social Skills: 4. Lack of public support: Kinds of Social Responsibility:<\/span> 2. Legal responsibility: 3. Ethical responsibility: 4. Discretionary responsibility: Social Responsibility towards different interest groups:<\/span> 2. Responsibility Towards the workers:<\/p>\n 3. Responsibility toward consumers:<\/p>\n 4. Responsibility Towards Government:<\/p>\n 5. Responsibility towards community:<\/p>\n Business & Environmental Protection Causes of Pollution:<\/span> 2. Water pollution: 3. Land Pollution: 4. Noise Pollution: Need for Pollution Control:<\/span> 2. Reduced Risk of Liability: 3. Cost Saving: 4. Improved Public Image: 5. Other social benefits: Role of Business in Environmental Protection:<\/span><\/p>\n Business Ethics:<\/span> Business ethics is the code of conduct followed and performed by every business. Ethical business behavior improves public image, earn\u2019s public confidence and leads to greater success.
\n<\/span>1. Social Responsibility – Meaning – Arguments for and against social responsibility – Kinds of social responsibility – Social responsibility towards different interest groups<\/p>\n
\n1. Justification for Existence and Growth:
\nThe prosperity and growth of business is possible only through continuous service to society.<\/p>\n
\nA firm can improve its image and builds goodwill in the long run when its highest goal is to serve the society .<\/p>\n
\nBusiness can avoid the problem of government regulations by voluntarily assuming social responsibilities.<\/p>\n
\nLaw alone can’t help out people with ail the difficulties they face. A socially responsible business can contribute something for social peace and harmony.<\/p>\n
\nBusiness has valuable financial and human resources which can be effectively used for solving problems of the society.<\/p>\n
\nSocial responsibility creates better environment for business operations as it improves quality of life and standard of living of the people.<\/p>\n
\nSome 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.<\/p>\n
\n1. Violation of profit maximization objective:
\nAccording to this argument, business exists only for the maximum profit to its shareholders and do not have responsibility to the society as a whole.<\/p>\n
\nInvolvement of business in social responsibilities involve a lot of expenditure which will ultimately be borne by the customers.<\/p>\n
\nThe business firms and managers are not expert to tackle the social problems like poverty, over population etc.<\/p>\n
\nbusiness cannot fulfill social responsibility because of lack of public confidence & cooperation.<\/p>\n
\n1. Economic responsibility:
\nThe primary social responsibility of a business is to produce goods and services that society wants and sell them at a profit.<\/p>\n
\nEvery business has a responsibility to operate within the laws of the land.<\/p>\n
\nThis includes the behavior of the firm that is expected by the society but not included in law. eg: Respect religious sentiment and dignity of people while advertising.<\/p>\n
\nThis refers to voluntary obligation that an enterprise assumes. eg: Giving charitable contributions to educational institutions, helping the people in natural calamities etc.<\/p>\n
\n1. Responsibility towards share holders or owners:<\/p>\n\n
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\nMany industrial organisations have been responsible for causing air, water, land and noise pollution.
\n1. Air Pollution:
\nAir 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.<\/p>\n
\nWater 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.<\/p>\n
\nDumping of toxic wastes reduces the quality of land and making it unfit for agriculture or plantation.<\/p>\n
\nNoise 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.<\/p>\n
\n1. Reduction of health hazard:
\nPollution control measures can check diseases like cancer, heart attack & lung complications and support a healthy life on earth.<\/p>\n
\nIt is a sound business policy to install pollution control devices in its premises to reduce the risk of liability of paying compensation to the affected people.<\/p>\n
\nAn effective pollution control programme is needed to save costs of operating business.<\/p>\n
\nA firm that adopts pollution control measures enjoys a good reputation as a socially responsible enterprise.<\/p>\n
\nPollution control results in many other benefits like clearer visibility, cleaner buildings, better quality of life, and the availability of natural products in a purer form.<\/p>\n\n
\nEthics is concerned with what is right and what is wrong in human behavior. Business ethics refer to the socially determined moral principles which should govern business activities.<\/p>\n
\nExamples of Business Ethics:<\/p>\n