Social Responsibility of Business and Business Ethics Test - 3

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.

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.

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.

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.

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

The employees should be given special attention. If the employees are satisfied, the enterprise can achieve all round progress.

 Responsibilities towards employees are

• To provide fair wages
• To provide healthy working conditions
• To provide them opportunities for promotion and development
• Giving them a share of profit
• Solve labour problems in time

The business can not run without consumers.  Consumers are very important for any business.

Responsibility towards employees are

• To make available good quality goods at cheap rates
• To make goods available to the consumers at the nearest point
• To provide full information about product
• To ensure regular supply of goods 

The business organisations should adhere laws created by government for development of the country.

Responsibilities towards government are

• To pay taxes regularly and honestly
• To observe rules laid down by the government 
• Helping government by establishing new industries

The main cause of air pollution is harmful gases emitted by automobiles, smokes and chemicals released from factories and manufacturing plants.

Water gets polluted by releasing highly toxic things and dumping dirty waste ladden water in the clean river water by different factories and manufacturing units.