Exercise Solutions Available
Step-by-step answers for all textbook questions in this chapter
How to Use This Solutions Page
1. Attempt NCERT questions yourself before checking answers. 2. For "arguments for and against," practise writing both sides. 3. Use tables for stakeholder responsibilities.
Key Concepts Recap
- Social responsibility: Obligation beyond profit and law — towards all stakeholders.
- Arguments for: Justification for existence, long-term interest, moral obligation, public image.
- Arguments against: Profit only, lack of expertise, increased costs, dilution of goals.
- Business ethics: Moral principles — top commitment, code, compliance, involvement.
- CSR: Companies Act 2013 Section 135 — 2% of avg net profit for qualifying companies.
- Stakeholders: Shareholders, Employees, Consumers, Government, Community.
Intext Questions
Q: Is profit the only objective of business?
Q: Give one example of an unethical business practice.
Chapter-End Exercise Solutions
Q1: What is social responsibility of business? State the arguments for social responsibility.
Social responsibility is the obligation of a business to act in ways that serve the best interests of society — beyond profit-making and legal compliance.
Arguments for Social Responsibility: 1. Justification for existence — business survives because society allows it to operate; it must give back. 2. Long-term self-interest — a socially responsible business earns public trust, goodwill, and customer loyalty. 3. Moral obligation — business has resources and power; it should use them for societal benefit. 4. Better public image — responsible businesses attract better employees, investors, and customers. 5. Avoids government intervention — if businesses act responsibly voluntarily, the government need not impose regulations. 6. Societal resources — business uses society's land, water, and labour; it owes a duty in return. 7. Problem-solving capability — business has the managerial skills and financial resources to address social issues.
Q2: State the arguments against social responsibility.
1. Profit is the only motive — the purpose of business is to earn profit; social welfare is the government's job. 2. Lack of social expertise — business people are trained in business, not in solving social problems. 3. Increased costs — spending on social activities raises product costs, making them less competitive. 4. Dilution of goals — focus on social objectives may reduce focus on efficiency and profit. 5. Lack of accountability — businesses are not elected by society and are not accountable to it. 6. Shareholders' money — social spending uses money that rightfully belongs to shareholders. 7. Reduced international competitiveness — additional costs may make products more expensive than imports.
Q3: Discuss the social responsibility of business towards different interest groups.
| Interest Group | Responsibilities |
|---|---|
| Shareholders | Fair return on investment; regular information about the company; safety of investment; transparent dividend policy |
| Employees | Fair wages; safe and healthy working conditions; training and development; job security; participation in management; welfare facilities (housing, medical, recreation) |
| Consumers | Quality goods at reasonable prices; no adulteration or false advertising; after-sales service; redressal of complaints; fair trade practices |
| Government | Payment of taxes honestly; compliance with all laws; contributing to government welfare programmes; not indulging in corruption or bribery |
| Community | Employment generation; environmental protection; development of backward areas; contribution to community programmes (schools, hospitals); conservation of natural resources |
Q4: What is business ethics? Explain the elements of business ethics.
Business ethics are the moral principles and standards that guide business behaviour — distinguishing right from wrong, fair from unfair.
Elements: 1. Top management commitment — ethical standards start from the top; the CEO and board must set the tone. 2. Publication of a code — the organisation must have a written code of ethics covering key areas like honesty, fairness, and transparency. 3. Establishment of compliance mechanisms — systems to monitor and ensure that the code is followed — ethics committees, audits, and whistle-blower policies. 4. Actual compliance — ethics must be practised, not just preached; there must be real consequences for violations. 5. Employee involvement — employees at all levels must participate in ethical decision-making; training and awareness programmes help.
Q5: Explain the relationship between business and environmental protection.
Business is a major contributor to environmental degradation — through air pollution (factory emissions), water pollution (industrial waste), land pollution (chemical dumping), and noise pollution (machinery).
Why businesses must protect the environment: 1. Business is a major source of pollution and must take responsibility. 2. Natural resources are finite — overuse harms future generations (sustainable development). 3. Legal requirements — environmental laws (Water Act 1974, Air Act 1981, Environment Protection Act 1986) impose penalties for violations. 4. Public pressure — consumers and communities demand eco-friendly practices. 5. Long-term survival — a degraded environment ultimately hurts business too.
Steps businesses can take: 1. Install pollution control equipment. 2. Use eco-friendly technology and renewable energy. 3. Recycle and reuse waste materials. 4. Conduct environmental audits regularly. 5. Develop green products and sustainable packaging. 6. Educate employees on environmental responsibility.
Q6: What is CSR? Explain its significance.
Corporate Social Responsibility (CSR) is a company's commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large.
Legal Framework in India (Companies Act, 2013, Section 135):
- Companies with net worth Rs 500 crore+, turnover Rs 1,000 crore+, or net profit Rs 5 crore+ must spend 2% of average net profits (last 3 years) on CSR activities.
- Must form a CSR committee of 3+ directors (1 independent).
- CSR activities include: education, health, rural development, environmental sustainability, slum area development.
- Spending must be disclosed in the annual report.
Significance: 1. Ensures businesses contribute to societal welfare systematically. 2. Addresses issues that the government alone cannot solve. 3. Builds corporate reputation and trust. 4. Promotes sustainable development. 5. Aligns business goals with social needs.
Internal Links
- [Chapter 6 Guide — Social Responsibility of Business](/school/cbse/class/11/business-studies/cbse-social-responsibility)
- [All Class 11 Business Studies Solutions](/school/cbse/class/11/business-studies/solutions)
- [Class 11 Business Studies Subject Guide](/school/cbse/class/11/business-studies)