Social Responsibility of Business and Business Ethics Class 11 Notes PDF Download
Chapter 6 of the Class 11 Social Responsibility of Business and Business Ethics explores the concept of corporate social responsibility (CSR) and its importance in modern business practices. This chapter emphasises that businesses should not only focus on profit-making, but also consider their impact on society and the environment. It discusses the ethical obligations of businesses, the benefits of CSR, and how companies can contribute positively to their communities.
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Chapter 6 Social Responsibility of Business and Business Ethics notes allow you to access and review the chapter content quickly. For a comprehensive study experience, check out the Class 11 Business Studies Revision Notes FREE PDF here and refer to the CBSE Class 11 Business Studies Syllabus for detailed coverage. Vedantu's notes offer a focused, student-friendly approach, setting them apart from other resources and providing you with the best tools for success.
FAQs on Social Responsibilities of Business and Business Ethics Class 11 Notes: CBSE Business Studies Chapter 6
1. What key topics should I focus on for a quick revision of Class 11 Business Studies Chapter 6 on Social Responsibilities?
For a quick and effective revision of this chapter, you should concentrate on the following core areas:
- The concept and need for social responsibility.
- Arguments for and against a business fulfilling social responsibilities.
- A business's specific responsibilities towards various interest groups (owners, employees, consumers, government, and community).
- The critical role of business in environmental protection.
- The definition and key elements of business ethics.
2. How can the fundamental concept of Social Responsibility of a Business be summarised?
The concept can be summarised as the obligation of a business to take decisions and perform actions that are desirable in terms of the objectives and values of our society. It is the idea that businesses should balance profit-making activities with actions that benefit society, going beyond their legal and economic duties to contribute to a better community and environment.
3. Why is fulfilling social responsibility considered beneficial for a business's long-term success, not just an extra cost?
Fulfilling social responsibility is crucial for long-term success because it builds goodwill and a strong public reputation. A socially responsible firm attracts better talent, retains loyal customers, and gains the trust of investors. By contributing to a stable and healthy society, the business ensures its own sustainable environment for growth and profitability, turning potential short-term costs into long-term strategic advantages.
4. What are the main arguments often made against businesses taking on social responsibilities?
When revising, it is important to recall the main arguments against social responsibility. These include:
- Violation of Profit Maximisation: The primary purpose of a business is economic, and social goals can dilute this focus.
- Burden on Consumers: The cost of social initiatives is often passed on to consumers through higher prices.
- Lack of Social Skills: Business managers are trained in business operations, not in solving complex social problems.
- Lack of Broad Public Support: The public may be sceptical or unsupportive of businesses engaging in social programs.
5. What are a business's core responsibilities towards key interest groups like owners, employees, and consumers?
A business has distinct responsibilities towards its main interest groups, which include:
- Towards Owners/Investors: To ensure the safety of their investment and provide a fair and regular return on capital.
- Towards Employees: To provide fair wages, safe working conditions, and opportunities for personal and professional growth.
- Towards Consumers: To supply good quality products and services at reasonable prices and to not indulge in unfair trade practices.
6. How does the concept of business ethics guide a company's approach to environmental protection?
Business ethics provides the moral framework for a company's actions. Protecting the environment is an ethical duty because industrial activities can cause pollution, which harms the entire society. An ethical business, therefore, understands its obligation extends beyond just following environmental laws. It proactively adopts eco-friendly technology, manages waste responsibly, and commits to sustainable practices as a core part of its moral responsibility to the community.
7. Beyond just following laws, what are the essential elements a business must establish to build a truly ethical culture?
To build a truly ethical culture, a business must integrate several key elements as per the CBSE syllabus for the 2025-26 session:
- Commitment from Top Management: Senior leaders must consistently champion and model ethical behaviour.
- Publication of a 'Code': A formal, written document outlining the company's ethical principles and standards of conduct.
- Establishment of Compliance Mechanisms: Creating systems to ensure ethical standards are followed, such as training and reporting structures.
- Involving Employees at All Levels: Including employees in the development and implementation of ethical programs to foster ownership.
- Measuring Results: Periodically auditing and evaluating whether the company's actions align with its stated ethical standards.
8. What is the core moral argument for why a business should address social problems like pollution?
The core moral argument is that businesses are a powerful and integral part of society that utilises its resources—both natural and human. Because of this, they have an ethical obligation to give back. Many social problems, such as environmental pollution or the creation of urban slums, are either caused or aggravated by business operations. Therefore, the business that contributes to these problems has a moral responsibility to help solve them, using its vast financial and technical resources for the well-being of the community.
