Concept of Social Responsibility in Business

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What is the concept of trusteeship as explained in the text?

Wealthy individuals act as trustees of trusts that take care of the welfare of society. (correct)
Businessmen are solely focused on profit maximisation.
Trusteeship refers to businesses being responsible for protecting the environment.
Society expects businesses to be the sole providers of goods and services.

Why is it important for business organizations to consider social responsibility according to the text?

To build a strong brand image and reputation in society. (correct)
To increase profit margins through unethical practices.
To avoid pressure from trade unions and government regulations.
To exploit natural resources for maximum financial gain.

How have society's expectations from business firms changed over time?

From avoiding conflicts with trade unions to prioritizing consumer-oriented policies.
From exploiting natural resources to protecting the environment.
From being solely focused on profit maximisation to considering trusteeship as a philosophy.
From being viewed only as providers of goods and services to responsible citizens contributing to social welfare. (correct)

Why should business organisations make proper use of the country's natural resources?

To avoid contamination of water resources and depletion of the ozone layer. (C) Signup and view all the answers

What role do trade unions play according to the text?

Trade unions expect management to provide fair wages to workers. (A) Signup and view all the answers

How has the growth of consumer movement impacted business enterprises?

It has forced businesses to follow consumer-oriented policies due to increasing consumer awareness. (A) Signup and view all the answers

What does the concept of social responsibility of a business entail?

Making decisions that align with society's objectives and values (B) Signup and view all the answers

According to Keith Davis, what does social responsibility of a business involve?

Extending obligations of business decisions beyond direct economic and technical interests (D) Signup and view all the answers

How does social responsibility differ from legal responsibility for a business?

Social responsibility involves voluntary actions beyond legal obligations (C) Signup and view all the answers

What did philosophers like Chanakya from India and pre-Christians era philosophers promote regarding business practices?

Advocating ethical principles in business dealings (C) Signup and view all the answers

In the context of social responsibility, what does 'legal responsibility' mean?

Compliance with the law is sufficient to meet all obligations (D) Signup and view all the answers

How does Howard D. Bowen define social responsibility?

'Social Responsibility is to pursue those policies to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.' (A) Signup and view all the answers