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The following forces have been responsible for increasing concern of business enterprises towards social responsibility.

(i) Threat of Public Regulation Threat of public regulation is one important reason due to which business enterprise feels concerned with social responsibility. Democratically elected governments have to take care of every section of the societies thus regulating the businesses behaving in a socially irresponsible manner.

(ii) Pressure of Labour Movement Labour movement for ensuring fair gains for the working class throughout the world has become very powerful as labour has become far more educated and organized. ‘ This has forced business enterprises to pay due regard to the welfare of workers.

(iii) Impact of Consumerism Development of education and mass media and increasing competition in the market have made the consumer aware of his rights and power which has forced business enterprises to follow a customer oriented approach.

(iv) Development of Social Standard for Business New social standards consider economic activity of business enterprises as legitimate but with the condition that they must also serve social needs. Business functioning is to be ultimately judged on the basis of social standards.

(v) Development of Business Education Educated persons as consumers, investors, employees, or owners have become more sensitive towards social issues with the development of business education with its rich content of social responsibility.

(vi) Relationship Between Social Interest and Business Interest Business enterprises have started realizing the fact that social interest and business interest are complementary to each other and that long-term benefit of business lies in serving the society well.”

(vii) Development of Professional, Managerial Class Previously business was managed by the owners but now professional management education in universities and specialized management institutes have created a separate class of professional managers who have a positive attitude towards social responsibility along with profit earning.

Ethics refer to the entire body of moral values which a society attaches to the actions of human beings.

Various business activities such as production, transportation and consumption of goods often result in over exploitation of natural resources. Thus, it is the responsibility of every business enterprise to control discharge of pollutants into the environment. The following steps can be taken by the business enterprises to control pollution. 

• Control by top managers: The top management of every organisation should be committed to creating, developing and maintaining a work culture conducive to environmental protection and pollution prevention. 
• Control by employees: Employees at all the levels of an organisation should be committed to keeping the environment clean and protected. 
• Better technology: Enterprises should employ good and superior technologies of production and use scientific techniques for waste disposal. This will ensure environmental protection and pollution control. 
• Follow rules: Enterprises must conform to the rules and regulations enacted by the government for the prevention of environmental pollution. 
• Increased awareness: By conducting workshops and training programmes, business enterprises must make an effort to spread awareness among its employees of the need to conserve the environment.
• Assessment programmes: An efficient mechanism for the periodic assessment of pollution control programmes may also be adopted, in order to weigh their costs and benefits.

‘Ethics’ is k Greek word meaning character; norms, ideals or morals prevailing in a group or society. Business ethics refers to the relationship between business objectives, practices, techniques and the good of society. It is concerned with the, socially determined moral principles which should govern business activities.

The basic elements of business ethics are: 

1. Top management commitment 

2. Publication of a ‘Code’ 

3. Establishment of compliance mechanism 

4. Involving employees at all levels 

5. Measuring results

(d) Air Pollution

Social responsibility of business refers to its obligation to perform those actions which are desirable in terms of the objectives and values of our society and benefit the community. Business cannot exist with the sole purpose of maximizing profits and has to undertake various activities for public good so as to maintain goodwill among people. Social responsibility is broader than legal responsibility of business. Legal responsibility may be fulfilled by mere compliance with the law but social responsibility includes voluntary obligations towards society not covered by law, along with the obligations laid down by law.

Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business

The features of Business Ethics are explained as below:

(1) Code of conduct : Business ethics is a code of conduct developed and evolved for regulating business activities toward welfare of society. It explains what activities one is suppose to do and not do for the welfare of the society. All business units must follows this code of conduct.

(2) Based on moral and social values : Business ethics comprises social and moral principles i.e. rules for carrying out business activities smoothly. This contains self control, consumer protection and welfare, fair treatment to social group, service to society, not to harm (exploit) others, etc.

(3) Gives protection to social groups : Business ethics protects the interests of all the constituents (groups) of the society which include consumers, creditors, employees, small businessmen, shareholders, government, etc.

(4) Provides basic framework : Business ethics specifies the social, cultural, legal, economic and other limits of business within which business units are expected to plan, work out and conduct their functions and activities.

(5) Voluntary : The businessmen must follow (accept) business ethics voluntarily, i.e. on their own. Business ethics must be similar to self discipline. It should not be made compulsory by law.

(6) Requires education and guidance : Prior to introduction of business ethics in the organisation, businessmen must be properly educated, trained and given guidance. The businessmen must be convinced and motivated to implement business ethics.

(7) Relative term : Business ethics is a relative term. It differs or changes from one business to another business and from one country to another.

In one country whatever is considered good may be banned or bad for other country.

(8) New concept : Business ethics is considered as newer concept. It is strictly followed and applied in developed, i.e. advanced countries. It is not accepted and followed in developing and poor (backward) countries.

Correct Answer is: b. Greening of management

 (d) Community

By environment, we mean our surroundings, which have an impact on our lives. It is the sum total of the surroundings and resources, including both biotic resources (i.e., living creatures such as plants and animals) and abiotic resources (i.e., non-living things, such as air, water and land) that affect our existence and quality of life. However, because of the rapid increase in population and industrialisation, the excessive use of resources has resulted in their degradation and depletion. Also, the discharge of harmful substances into .the environment has contributed towards pollution. Environmental pollution can be classified into the following four types.

1. Air Pollution: It is caused by the emission of harmful gases into the atmosphere. 

2. Water Pollution: It is caused by the discharge of industrial and household wastes into the rivers, thereby degrading the quality of water. 

3. Land Pollution: This is caused by dumping toxic wastes on land, which in turn damages it, making it unfit for agriculture.

4. Noise Pollution: It is caused by the noise from factories and vehicles, which may cause serious health problems such as loss of hearing or mental disorders.

(A) Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business.

(B) Elements of business ethics : 

The elements of business ethics are explained as follows:

(1) Trustworthiness : Every business unit or organisation must work in all areas to maintain trustworthiness. This increases the confidence of clients or customers in the organisation. The clients usually believe in organisations for reliability and quality performance. Company or organisation functions and prospers on character, i fairness, truth, honour and ability.

(2) Honest service delivery : It is much better to be honest about what one can do rather than making empty promises. Empty or false promises ruin the reputation of the business organisation. Business organisation should fulfil or complete all its commitments and obligations and leave every customer feeling well served and satisfied.

(3) Confidentiality : The company or business organisation should strictly obey and follow its i internal confidential policy. It is utmost important for every business organisation to keep in secret the confidential details of its own clients. For private gain it should not disclose such information to any one.

Similarly, it should not use any means to get information from competitors about certain formulae or methods of production.

(4) Openness : Good business ethics and continuous improvement also come from keeping an open mind. Business unit should follow the principle of openness. It should regularly demand opinions and feedback from both clients and team members. Even in times of business disagreement, business unit should welcome other’s opinions and ideas with respect and courtesy.

(5) Other common business ethics : (1) A large portion of our society is composed of common people with low purchasing power. Business enterprises should consider likes, dislikes and financial position of these people and accordingly manufacture and provide goods and services. (2) The guaranties and warranties given by the manufacturer should be proper and acceptable by the customers.

(3) Advertisements given by the businessmen should not cross limit of decency.

(1) Today the world is changing and expanding very fast. Social demands have changed gradually over the years. The business has to respond them positively.

(2) Now the people all over the globe are well aware of their rights. Overall knowledge level has also increased. In order to fulfil the growing needs of the people, the business firms must operate as per the expectations of society. Business units must give society what it actually wants.

(3) Consumer satisfaction is the ultimate purpose of business activities. A business organisation must give priority to consumer satisfaction over profit motive. Its survival, progress and reputation depend upon the consumer satisfaction. It must win the confidence of its customers by giving them useful services.

(4) Business organisations are expected to act in 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 the social welfare.

(1) The persons who provide finance for short term as well as for long term to the company are called owners or investors. They invest their money and accept risk factor. Management is expected to provide full and factual information about the financial performance of the company to the owners and investors.

(2) 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 are manipulative or unfair in the securities market. Thus, business organisations 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.

(3) Therefore, business organisation should consider responsibilities toward the owners and should avoid all sorts of unfair practices related to stock exchange.

Social responsibility refers to the duties and responsibilities of business enterprises towards the society and its members. It is the duty of an enterprise to conduct activities that are favourable to the society. As any business makes use of society’s resources in the form of human and physical capital, it is the moral duty and responsibility of the business to work for the betterment of the society. 

The concept of social responsibility exists in India since ancient era; but, today the traditional meaning of the term ‘social responsibility’ has evolved and grown into something more. Earlier social responsibility only constituted a philanthropic concept of helping the poor and society’s welfare. 

However, the modern concept of social responsibility includes various other aspects of social welfare such as dealing with ethical, legal and economic areas. It not only includes helping the weaker sections of the society but also to protect environment, adhere government laws, optimise the use of resources and undertake corporate social responsibilities.

Business organisation can maximise profitability by minimising wastage. 

Explanation: 

Minimising wastage means optimum utilisation of resources which means that the available resources are utilised to the maximum. This reduces the cost of production thereby resulting in higher profits.

Providing fair returns on investment is the responsibility of organization towards this group- Investors 

Explanation: 

Investors provide finance to the business and finance is the backbone for any business. Hence, it is ethical responsibility of the organisation to provide timely and fair return on investment to the investors.

The environment is defined as the totality of man’s surroundings including both natural and man-made surroundings including 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. Environmental pollution refers to the injection of harmful substances into the environment which cause change in the physical, chemical and biological characteristics of air, land and water and can harm the life of human and other species.

(1) Business Ethics refer to code of conduct that a business organisation are expected to follow while doing a business. According to ‘Wheeler’, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as recognizing the moral responsibility for right or wrong conduct of business. ”

(2) 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 economic gain in the long run.

(3) 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 behaviour 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.

Business ethics and social responsibility are the words that are almost used as a common parlance interchangeably. While social responsibility is self explanatory, ethics is a word that puts one in a dilemma. Social responsibility looks clearly defined and demarcated. Companies have a policy of social responsibility known as Corporate Social Responsibility whereby they commit to follow their businesses in such a way so as to benefit the community at large. But ethics is a loose term that is dependent upon a person’s conscience. There are certain differences between the two and the two are not overlapping completely. 

Business Ethics: To understand business ethics, first we need to understand and spell out clearly the word ‘ethics’. Derived from ancient Greek word ethos, ethics has come to mean moral character. Ethical behaviour is what is good or right. Ethical senses always make use of good, bad, right and wrong. Applying this definition to business, we come to a conclusion that though the primary objective of any business or company is to maximize by the decisions taken by the company for the operation of business. Business ethics is the behaviour of any business that it indulges in its dealings with the community or society. For some, making money is all they are interested in, and this is capitalism in its dirtiest form. These people are least concerned with the bad effects of their business practices and the harm they are doing to the society at large. When companies do not engage in good business ethics, they are penalised by the law. But such cases are rare and the profits of companies engaging in unethical behaviour are far more than these punitive fines. 

Social Responsibility: Man is a social animal and cannot live in isolation. He is expected to behave in a manner that is socially and morally acceptable to others. The same applies to businesses. Though the primary objective of any business is to earn maximum profits for the owners and shareholders, it is also expected to conduct its operations in a manner that it fulfills its social obligations also. For example, though it is not binding on any private sector company to provide employment to the disabled or weaker sections of the society, it is considered to be a part of the social responsibility of the company to absorb people from such sections of the society. Similarly though there is not written law to compel a company to engage in acts to do something to reduce pollution or to do something for the betterment of environment, taking up projects to clean up environment are considered to be a part of the social responsibility of the company. Difference between Business Ethics and Social Responsibility Though business ethics and social responsibility seem to be overlapping, there has always been a contradiction between the two. 

1. Companies, though they are committed to be socially responsible for their behaviour have been found to be engaging in acts that cannot be called ethical. 

2. What is good for the society is sometimes not good for the business, and what is good for the business is almost always not good for the society. 

3. If the society is conscious, it responds in such a way that businesses are forced to behave responsibly. The same applies to the administration and the judiciary of any country. 

4. For example, selling of liquor and tobacco in any society is not against business ethics though it may be against the principles of social responsibility. The same applies to lotteries and gambling. But it is certainly against business ethics as well as against social responsibility to entice minors to engage in smoking and drinking.

The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world.

Definition: CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the Government from Ghana, through to CSR is about business giving back to society from the Philippines. 

Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving. It is not same as business ethics. Business ethics is a personal concept and is wider in many senses than CSR.

(d) All the people

Correct Answer is: d. all the people

(1) Functioning of business units and industrialisation create air, water and sound pollution. The carbon particles, dust, harmful gases, chemicals, etc. create air pollution.

(2) Harmful chemicals, untreated sewage, industrial waste, fertilizers, pesticides, refuse, e-waste, etc. when get mixed with water, creates water pollution. Aeroplanes, motor vehicles, construction machines and industrial equipment create sound pollution.

(3) The business organisations 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 organisation should assist the concerned organisations engaged in pollution control programmes such as plantation of trees, preservation of wildlife and natural resources.

(4) Protecting the environment and maintaining ecological balance in the following manner:

1. Business organisations save cost and money through minimising waste

2. Business organisations which follow green practices (plantation of more and more trees) get support from customers

3. Business organisations which take precautions to protect environment create awareness among employees

4. Protection of environment process cut carbon emission and create conditions for green growth which is beneficial to society

5. Business organisations showing awareness towards environment protection get support and encouragement from the government. Thus, business organisation should avoid environmental pollution and ecological imbalance.

(1) Business ethics is a code of conduct evolved for regulating the activities of business towards the society and others.

(2) 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.

(3) It protects the interests of all the constituents of the society. It creates healthy and competitive business atmosphere. It induces businessmen to introduce social security and welfare measures.

(4) The businessmen promote activities enhancing the cultural values of the society. Thus, business ethics, if practised by businessmen in the right spirit, can be considered as a tool for social development.

Every business organisation should pay attention to business ethics while conducting its activities. True 

Explanation: 

Business ethics refers to the code of conduct. It is a system of moral principles that every business should follow, irrespective of its size. This code primarily guides and help the people to behave in a proper manner which is socially acceptable.

Five cases of social responsibility: 

1. Existence and trusteeship: The existence of a business depends on how efficiently it serves the society and conduct activities based on trusteeship. According to it, a business would benefit only from those activities which are good for the society. 

2. Long-term interest of a firm: Giving due consideration to the welfare of society and serving its various members can help a business gain maximum profits in the long run and project a favourable image to the public. 

3. Adherence of government regulations: Along with working in line with the values and ethics of the society, a business should also adhere to the government rules and regulations regarding goods and environment such as Consumer Protection Act and Food Adulteration Act. 

4. Optimum utilisation of resources: In comparison to other members of the society, business enterprises have greater access to financial and other resources, thus, they should effectively and optimally utilise the resources for solving various social problems. 

5. Environment protection: The business makes use of a country’s natural and human resources to produce goods and services. Thus, it becomes the moral duty of businesses to work towards protecting and maintaining a healthy environment.

To maintain safety of investment is responsibility of business towards investors. 

Explanation: 

Investors provide finance to the business organisations which is essential for the working of any organisation. In return, the business should also ensure that their investment is secured and should invest in those avenue which is likely to bring high returns.

Creditors who provide finance to business organisation- Investors 

Explanation: 

Investors provide capital to business organisations. This capital is essential to run the operations of any business. Thus, investors are the creditors of business organisations.

Business ethics can be considered as a tool for social development. True 

Explanation: 

Business ethics are the principles which, if business units follow, not only lead to the development of business units but also to the growth of the whole economy. Thus, contributing to social development.

Business and environment protection are contradictory. True 

Explanation: 

With industrialisation, there has been depletion of natural resources and increase in the level of pollution. Therefore, it would be right to say that business and environment are contradictory to each other. However, in this regard, it is important to frame rules that can protect the environment and, at the same time, encourage the growth of a business.

Business organisations can use natural resources as they want. False 

Explanation: 

Natural resources are limited and scarce; therefore, they should be used optimally. Inefficient use of these resources can result in their depletion. Thus, business units should make optimum use of these resources to ensure their existence in the long run.

Business or organisation should protect health and provide safety measures to employees. 

Explanation: 

Business organisations should provide proper medical, canteen and sanitation facilities to their employees. They should also ensure the safety of employees through regular maintenance of machines to prevent accidents. A healthy employee will always be more productive and the organisation which takes care of its employees' needs will earn reputation in the market.

Introducing environment management techniques benefits business organisation. True 

Explanation: 

With the help of environment management techniques, business units can assess the impact of their activities on the environment and take necessary steps to protect the environment. Thus, benefiting the overall society and environment.

The following steps should be taken by business organisations to protect the environment: 

i. Control by managers and employees: The top management and the employees of every organisation should be committed to create and maintain a working culture that is conducive for environmental protection. 

ii. Optimum use of resources: The business organisation should work towards optimum and efficient utilisation of resources and renewable energy, so as to minimise their wastage and keep the environment clean and protected. 

iii. Better technology: Enterprises should employ sophisticated and superior technology for production and waste disposal. 

iv. Government rules: Business operations must adhere to the rules and regulations laid down by the government to prevent environmental pollution. 

v. Productive investment: By investing in projects which aim at water conservation, pollution control, and producing renewable energy in the long term, the business enterprises should work towards environment protection.

It means that the top management should not remain very rigid in its policies and decisions. The management should listen to the reasonable demands of employees and be flexible enough to fulfill them.

Role of media exerts major influence on business organisations. True 

Explanation: 

Nowadays, media is easily accessible. It has the power to create or destroy the image of business organisations. For example, any act of unfair trade practice or consumer exploitation can result in the bad publicity of a business. Hence, media exerts a major influence on business organisations.

Management should give recognition to employee union. It should have a compromising and flexible approach for paying attention to the problems raised by union. Management should try to solve reasonable demands of the union.

Tangible goal of earning profit is the sole objective of business. False 

Explanation: 

Business units have tangible as well as intangible goals. Tangible goals include earning profit, business growth and higher productivity. Intangible goals include activities directed towards the welfare of the society.

Social responsibility of a business towards investors.
When a company needs additional capital it raises it from investors. These investors could be banks, preference or debenture share-holders, etc. social responsibilities towards these investors are as follows:

1. Timely payment of good returns:
Investors invest with an expectation of high returns at regular interval or a present time. Thus it is the social responsibility of the business unit to pay good returns to investors regularly.

2. Provide necessary information:
It is the responsibility of the business unit to inform its current position and future plans to the investors.’

3. Provide growth to the invested value:
Better the financial results of the unit better will be the market value of the funds invested in the company. So, a unit should take such decisions which gives growth to the investment of investors.

4. Security of money:
Investors invest their money in the business unit believing that the company will work efficiently and deliver good returns. It is the social responsibility of the business to make proper use of investor’s money so that it remains safe and grows. This will also help company to borrow more money from investors in future.

5. Welcome suggestions:
Generally, the investors who invest their money are aware of the market trends. So, the business units should welcome the suggestions of investors and try and use them for betterment of the company.

Social responsibility of a business towards its internal stake-holding groups can be classified in three parts.

They are:
A. Social responsibility of business towards owners:
Here, owners refer to the share-holders which are considered to be the true owners of a company. When business units grew in size, they started obtaining capital from share-holders which were considered true owners separate from management. So, from the view point of a company, it has certain social responsibilities towards its owners. They are:
1. Allow participation in decision making:
Share-holders are the owners of the company. So, it is important to maintain their confidence and trust in the company. It is social responsibility of the company to allow the owners to participate in decision making process.

2. Provide capital security and growth:
Company’s managers need to put their personal interest aside and use their skills and experience for providing security to the capital that the share-holders have invested and give them good returns through company’s growth.

3. Protecting interests of the owners:
The company should focus on providing safety and growth to the capital invested by owners i.e. share-holders. It should fulfill its responsibility of providing long-term growth to the company and maintain owners’ interest in the company.

4. Priority in development of company:
When company plans to expand/develop itself and is in need of capital then it should first give the priority to the existing owners and offer them rights share.

B. Social responsibility of a business towards investors.
When a company needs additional capital it raises it from investors. These investors could be banks, preference or debenture share-holders, etc. social responsibilities towards these investors are as follows:
1. Timely payment of good returns:
Investors invest with an expectation of high returns at regular interval or a present time. Thus it is the social responsibility of the business unit to pay good returns to investors regularly.

2. Provide necessary information:
It is the responsibility of the business unit to inform its current position and future plans to the investors.’

3. Provide growth to the invested value:
Better the financial results of the unit better will be the market value of the funds invested in the company. So, a unit should take such decisions which gives growth to the investment of investors.

4. Security of money:
Investors invest their money in the business unit believing that the company will work efficiently and deliver good returns. It is the social responsibility of the business to make proper use of investor’s money so that it remains safe and grows. This will also help company to borrow more money from investors in future.

5. Welcome suggestions:
Generally, the investors who invest their money are aware of the market trends. So, the business units should welcome the suggestions of investors and try and use them for betterment of the company.

C. Social responsibility of business towards employees.
Employees form the base of any business unit. Without their whole hearted contribution a business unit cannot work with its full efficiency. Thus, it is the social responsibility of a business unit to take proper care of its employees. This includes:
1. Maintaining standard of living :

Remuneration i.e. salary/wages an employee earns reflects his standard of living. -» Based on company’s financial status it must provide a reasonable remuneration to the employees which can maintain their standard of living. For this the business over and above remuneration, need to provide incentives, bonus, etc. at pre¬decided intervals.

2. Provide proper work atmosphere and facilities:

• The business unit must provide positive work atmosphere that encourages growth of peer relationship and strong bonding towards company.
• Based on unit’s size it can provide canteen, transportation, clean and well ventilated environment, etc. to the employees.
• If possible a business unit should provide air-conditioning and separate arrangements for female employees.

3. Provide social security:

In addition to timely and reasonable salary, employees should be provided facilities like provident fund, pension, sick and casual leaves, medical and life insurance, etc.

4. Give recognition to employees (labour) union:

Employees form employee (labour) union to present their problems and demands in an organized way to the management. The management must provide recognition to such union. It should listen to union’s reasonable demands and fulfill them for maintaining motivation and moral of the employees.

5. Maintaining a compromising attitude by top management:

• Top management should have a flexible and compromising attitude for the betterment of the business unit.
• It should keep in mind that employees are an asset and they will work efficiently and remain motivated only if their reasonable demands are fulfilled and their genuine complains are solved.
• By maintaining a compromising attitude the business can let go its few incorrect or egoistic decisions or policies and compromise them for employees and business growth.
• A warm and cordial relation should be maintained with employees so that family like healthy atmosphere can be maintained in the company.

6. Motivation:

• A business unit must create several opportunities through which it can constantly motivate its employees.
• A unit can arrange competitions for best performance, arrange tours or dinners with employees, award them for their specific contribution in enhancing business, etc. The business unit also encourages its employees through increments, promotions, rewards, cash vouchers, travel vouchers, etc.

7. Other responsibilities:

• Business unit should involve employees in decision making, inform them about company’s important decisions and plans, terms and conditions of work before appointing them, etc.
• The unit should also care for education and health of employee’s family, etc.

• Land and forest preservation
• Preservation of water resources
• Preservation of atmosphere and
• Preventing noise pollution.

The following guidelines should be followed by business organisations to protect the environment: 

Stage I: Planning - At the planning stage, every organisation should make a plan to protect the environment. They should take up projects and activities which aim at development of renewable energy sources and water conservation. In this regard, policies should be coordinated with the plan. 

Stage II: Development of design - Business organisations must aim at optimising the use of resources and control pollution by undertaking activities such as standardised packing and produce environment friendly products. 

Stage III: Manufacturing - In this stage, efficient energy models should be used by the firms. Also, the technology and the machineries should be updated regularly. 

Along with this, following points should also be considered to protect environment. 

i. Impact of business activities on environment - Organisations can assess the positive and negative impact of their activities on the environment. Accordingly, they can make changes in the production process. 

ii. Use of interactive tools - Environment can be protected using interactive tools. Firms can make use of less harmful toxics substances and minimise the use of carbon processes. 

iii. The Four R’s - The four R’s principle, that is, refuse, reduce, reuse and recycle, should be followed by an organisation in the production process. The principle implies refusal of pollution-creating materials. If that is not possible, firms aim at reducing the quantity of pollution-creating materials. After that, they aim at reusing and recycling the materials. 

iv. Environment management system (EMS) - It is a document created by business units to assess the impact of their operations on the environment and take necessary for environment protection.

In modern business environment, globalisation provides more opportunities and challenges. 

Explanation: 

Globalisation can be defined as the opening up of the world economies to each other. With globalisation, the whole world has become one market. It provides more opportunities to businessmen, as they can procure raw materials and labour at a cheaper rate from anywhere in the world. It is also a challenge, as it infuses competition in the market.

(c) Reasonable price

Business units should not disclose their records to investors. False 

Explanation: 

Investors provide business units with finance to support their operations. Thus, it is the responsibility of business units to maintain transparency with the investors on the working of business. They should also communicate to their investors how their funds are being utilised.

Management should avoid workers’ participation while making decisions. False 

Explanation: 

Management should welcome and encourage participation of workers. This not only raises their morale but also develops a sense of belonging for the organisation. This in turn motivates them to contribute their best towards the achievement of the business goals.

Social responsibility:

• Humans live in society and do business. So, business is an undivided unit of the society. Various areas of society contribute for the establishment, existence and expansion of business. Without the existence of society or support of society one cannot think of business.
• For example, when we do a business we need a class of people who can produce or provide us raw material, we need people who can trust us and invest in our business or provide us credit, we need employees who can help us achieve our business goals, we need cleaning and maintenance staff who can keep our business premises clean.
• We also need a strong support from government to provide us infrastructure such as road, transportation, electricity, etc.
• We also need government’s support to gives us a platform to work and to provide us a legal system to resolve business problems.
• Without all these supports it is impossible that one can ever think of establishing a business.
• As a human being it then becomes our social responsibility as well the ^ responsibility of our business to thank and pay back the assistance we get from ’ all these sections of the society. Though not compulsory to do so but every individual must do this voluntarily to make this society a better place to live and help the future generations.
• With this approach, H. R. Boven in year 1963 gave the concept of pro-company in his research paper in America. Since then the concept of pro-company has become rampant. The prefix ‘pro’ refers to ‘in favour of So pro-company social responsibility can be thought as a company that favours social responsibility.
• As per World Business Council for sustainable development a pro-company social responsibility refers to a company that works for the financial development of the company, works for improving quality and standard of living of employees and their families and show ethical commitment towards the community of the society.

Providing career opportunities to employee is the responsibility of business. True 

Explanation: 

It is the ethical responsibility of business units to provide opportunities for the promotion and development of employees. This motivates the employees to work hard. Employees should be provided with information on qualification, skills and experience required to get higher positions.

Environment management system which provides guideline for incorporating eco design is ISO 14006-2011. 

Explanation: 

ISO 14006-2011 standardisation is used for environmental management. It provides a set of standards that business organisations should maintain to protect the environment. Environment management system aims at preventing environmental pollution caused by industries.