Social Responsibility of Business and Business Ethics Test - 1

Explanation:

The shareholders are the owners of the company. They have provided the capital to the company. Therefore management is responsible  

• To provide a fair return on capial invested by them 
• To ensure safety of their investment
• To provide information of grawth and expansion policies

Explanation:

The discretionary responsibility is the purely voluntary obligation.  The business organisation is not bound to these obligations yet these affect  business organisations.  The donations for chatitable purposes comes under discretionery responsibility.

Explanation:

Ethical Responsibility means responsibility towards society which is expected from business firms by the society to follow social norms, moral values, etc. in all the business activities.

Thus respecting dignity, religious emotions and sentiments of employees comes under ethical responsibility.

Explanation:

The laws are for the betterment of the society, everyone in the society must adhere these laws. Therefore the responsibility of every business is to carry out business activities within the laws of the land.

Explanation:

The business takes sources i.e. factors of production from the society. In return as an economic institution, it is the responsibility of business to produce and provide goods and services according to the need of the society and earn profit also.

Explanation:

• The employees should involve because they will implement the policies.
• Suitable mechanism should be established so that it may ensure proper execution of plans and their feedback.
• The codes will cover honesty, conflicts, safety and security and adherence to law etc.

Explanation:

Ethical business improves goodwill, people's confidence and trust. Such business has helping attitude towards needy, caring for society and environment. Thus stakeholders get benefits of adopting ethics in business.

Explanation:

Ethics means the ideals which one follows in life. These are the principles that defines what is right and what is wrong in human behaviour from the point of view of public welfare. Ethics can be related with various fields like law, business, medical etc.

Explanation:

• The harmful wastages, gases and chemicals affect the interests of different group of people.Thus increases libility and compensation. To minimise it need for pollution control arises.
• Pollution causes many diseases like heart attack, lung diseases and cancer, etc. Thus The need to control pollution arises.
• Heavy wastages in production processes lead increase in cost of production. It becomes more important to check wastages and control pollution.

Explanation:

The injection of harmful gases such as corbon monoxide emitted from automobiles, smoke and chemichal from factories etc. reduce the quality of air. Thus cause air pollution.