Social Responsibility of Business and Business Ethics Test - 2

Social Responsibility refers to the obligations of the business to take those decisions and to perform those actions which are considered desirable in respect of objectives and values of the society whereas Legal responsibility is a type of social responsibility where business is required to carry out business activities within the laws. Thus social responsibility is broader term.

The ill society endangers the survival of the business.  Better business environment maximises the profits, growth and development of business. Hence the business should try to solve social problems.

Some social problems like unhealthy working environment, corruption, environmental pollution etc. have been created by the business. The Businesses have the skill, human and financial resources to solve such type of social problems created by themselves.

Responsibility towards community

• It should behave as a good citizen and should act according to the well accepted values of the society.
• Not to create pollution
• To respect the laws of the country
• To contribute to the raising of standard of living 

All are responsible

• Government should  pass many Acts to check the problem of pollution.
• Scientists should devise new methods and machines to check pollution
• Business People should apply new methods and techniques to prevent pollution

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.

• 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.

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.

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.

• 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.