Social Responsibility Overview

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Questions and Answers

What is one primary benefit of a company engaging in social responsibility?

  • Increased government oversight
  • Reduction in operational costs
  • Higher employee turnover
  • Improvement of brand image (correct)

Fulfilling social obligations is detrimental to the long-run survival of firms.

False (B)

What motivates managers to create public expectations regarding social responsibility?

Increase in education and understanding of businesses

A firm fulfills its social responsibility to improve its _____ image.

<p>public</p> Signup and view all the answers

Match the following benefits with their descriptions:

<p>Improved brand image = A company's public perception gains through support of social causes Long-run survival = Fulfills social obligations beneficial for company longevity Employee support = Encourages organizations to be responsible towards their employees Self-enlightenment = Managers voluntarily setting standards of moral responsibility</p> Signup and view all the answers

Which factor leads consumers to buy a product?

<p>Their personal wants (B)</p> Signup and view all the answers

Government regulations are beneficial as they enhance corporate freedom.

<p>False (B)</p> Signup and view all the answers

What is the highest goal of a firm to gain maximum profits in the long run?

<p>Service to society</p> Signup and view all the answers

What is social responsibility aimed at?

<p>Acting for the benefit of society (D)</p> Signup and view all the answers

Legal responsibility is the same as social responsibility.

<p>False (B)</p> Signup and view all the answers

What must a business do to fulfill its social responsibilities?

<p>Recognize social obligations not covered by law and engage in voluntary actions for societal benefit.</p> Signup and view all the answers

A socially responsible company can improve its __________.

<p>brand</p> Signup and view all the answers

Which of the following is a benefit of social responsibility for employees?

<p>Feeling part of something bigger (C)</p> Signup and view all the answers

Match the aspects of social responsibility with their benefits:

<p>Improving Company's Brand = Builds company image Engaging Customer = Influences buying decisions Retaining Top Talent = Fosters loyalty Standing Out of Competition = Enhances market position</p> Signup and view all the answers

Social responsibility is limited to businesses only.

<p>False (B)</p> Signup and view all the answers

Why do companies engaging in social responsibility stand out from the competition?

<p>They create a positive impact on the community and enhance their brand reputation.</p> Signup and view all the answers

What is the primary social responsibility of a business enterprise?

<p>To produce goods and services that society wants (D)</p> Signup and view all the answers

Business interest and social interest are always contradictory.

<p>False (B)</p> Signup and view all the answers

What role does professional managers' education play in society?

<p>It helps provide a class of professional managers who focus on satisfying multiple interest groups.</p> Signup and view all the answers

Under the legal responsibility of a business, it is essential for a company to operate within the _______.

<p>laws of the land</p> Signup and view all the answers

Match the types of social responsibility with their descriptions:

<p>Economic responsibility = Produce goods and services that society wants Legal responsibility = Operate within the laws of the land Ethical responsibility = Behavior expected by society but not law codified Discretionary responsibility = Voluntary actions beyond legal and ethical norms</p> Signup and view all the answers

What is a characteristic of discretionary responsibility?

<p>It involves voluntary actions by businesses. (A)</p> Signup and view all the answers

Every business has an ethical responsibility to safeguard capital investment.

<p>True (A)</p> Signup and view all the answers

How have business education and professional management education influenced social responsibility awareness?

<p>They have increased awareness of the social purpose of business and the importance of serving society's interests.</p> Signup and view all the answers

What is one of the responsibilities of the worker mentioned in the content?

<p>To ensure a fair wage (C)</p> Signup and view all the answers

Pollution primarily results from agricultural practices.

<p>False (B)</p> Signup and view all the answers

What does pollution change about the environment?

<p>The physical, chemical, and biological characteristics of air, land, and water.</p> Signup and view all the answers

The workers must ensure a fair ____ from the management.

<p>deal</p> Signup and view all the answers

Match the following environmental concepts with their descriptions:

<p>Pollution = Injection of harmful substances into the environment Natural resources = Resources useful for human life like land, water, and air Hazardous pollutants = Toxic by-products the environment cannot assimilate Environmental protection = Control of pollution for better quality of life</p> Signup and view all the answers

Which of the following is NOT considered a natural resource?

<p>Cultural heritage (C)</p> Signup and view all the answers

The environment can absorb an unlimited amount of pollutants.

<p>False (B)</p> Signup and view all the answers

What is the relationship between pollution and environmental quality?

<p>Pollution risks environmental quality and human health.</p> Signup and view all the answers

What primarily causes air pollution?

<p>Smoke from manufacturing plants (B)</p> Signup and view all the answers

Water pollution has no impact on human health.

<p>False (B)</p> Signup and view all the answers

Name one effect of noise pollution.

<p>Loss of hearing</p> Signup and view all the answers

Water becomes polluted primarily from __________ and waste dumping.

<p>chemical</p> Signup and view all the answers

Match the following types of pollution with their causes:

<p>Air pollution = Carbon monoxide from automobiles Water pollution = Chemical dumping Land pollution = Toxic waste dumping Noise pollution = Running of factories</p> Signup and view all the answers

What is a major health risk associated with air pollution?

<p>Heart attacks (A)</p> Signup and view all the answers

Land pollution only affects agricultural quality.

<p>False (B)</p> Signup and view all the answers

What can businesses do to reduce the risk of liability concerning pollution?

<p>Install pollution control devices</p> Signup and view all the answers

What is one benefit of pollution control related to public perception?

<p>Improved public image (C)</p> Signup and view all the answers

Employing superior technology is irrelevant to pollution prevention efforts.

<p>False (B)</p> Signup and view all the answers

What should top management do to support environmental protection?

<p>Create, maintain, and develop a work culture for environmental protection.</p> Signup and view all the answers

Cost savings are especially significant when improper production technology results in greater __________.

<p>wastes</p> Signup and view all the answers

Match the following roles of business in environmental protection:

<p>Commitment by top management = Create work culture for environmental protection Compliance with laws = Follow government regulations for pollution prevention Educational workshops = Share technical information with stakeholders Assessment of pollution control = Evaluate costs and benefits of programs</p> Signup and view all the answers

Which of the following is NOT a social benefit of pollution control?

<p>Increased production costs (A)</p> Signup and view all the answers

Business ethics only involves maximizing profits.

<p>False (B)</p> Signup and view all the answers

How can businesses participate in government pollution control programs?

<p>By engaging in hazardous substance management, tree plantation, and pollution cleanup efforts.</p> Signup and view all the answers

Flashcards

Social Responsibility

An ethical obligation of organizations and individuals to act in ways that benefit society.

Legal Responsibility

The obligation to comply with the law.

Social Responsibility vs Legal Responsibility

Social responsibility goes beyond legal requirements, adding voluntary actions for society's benefit.

Need for Social Responsibility

Reasons businesses should practice social responsibility.

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Brand Image

The perception of a company by the public.

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Employee Engagement

Employees' sense of involvement and commitment to the company.

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Customer Loyalty

Customers' commitment to buying from a particular company or brand.

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Competitive Advantage

A quality that sets a company apart from its rivals in the market.

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Stakeholders

People or groups affected by a company's actions, including employees, customers, and the community.

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Consumer Sovereignty

Consumers have the power to choose what they want to buy, driving companies to be responsive to their needs.

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Long-Term Survival

Companies that prioritize societal good are more likely to succeed in the long run.

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Public Image

A company's reputation in the eyes of the public.

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Social Responsiveness

Companies adjusting their practices to meet societal needs and expectations.

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Employee Interests

Companies need to treat employees well in order to get their support.

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Self-Enlightenment

Companies, as educated entities, are voluntarily becoming socially responsible, not because of mandates.

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Business and Society

Businesses cannot operate independently of society; they are interconnected and influence each other.

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Social Responsibility in Business Education

Business education is increasingly emphasizing the social impact of business actions, teaching that businesses have a role in serving broader societal interests.

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Social and Business Interests

Social and business interests are not opposing forces; they are complementary and mutually beneficial in the long run.

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Professional Managers

Professional managers in businesses consider multiple stakeholder interests, rather than just profit maximization.

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Economic Responsibility

Businesses' primary responsibility is to produce goods and services that society needs and desires while earning a profit.

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Ethical Responsibility

Businesses must act in a socially desirable way, even if not legally required; it's voluntary behavior.

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Discretionary Responsibility

This is behavior expected by society but not legally required; it involves voluntary actions.

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Fair return for shareholders

Workers and enterprises are responsible to give a fair return to company owners.

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Fair wage for workers

Management must ensure workers receive a fair wage.

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Business protection against issues

Businesses must avoid harming customers through poor quality, misleading ads, or bad service.

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Environmental definition

The environment includes everything around us, both made by nature and by humans.

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Environmental resources

Resources in the environment, useful for life, include natural things (land, water, air) and human-made things (culture, economy).

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Pollution definition

Pollution is harmful substances entering the environment.

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Pollution effect

Pollution changes the environment's air, land, and water, risking health and resources.

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Hazardous pollutants

Some pollutants are so harmful the environment cannot process them.

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Air Pollution Sources

The main sources of air pollution are vehicles (like cars) that release carbon monoxide, and factories that release smoke and chemicals.

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Water Pollution Impact

Water pollution, often caused by chemical spills and waste dumping, harms animals and can even be deadly to humans.

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Land Pollution Cause

Land pollution occurs when toxic waste is dumped on land, affecting soil quality and making it unsuitable for agriculture.

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Noise Pollution Effects

Noise pollution from loud machines and vehicles can cause hearing loss, heart problems, and mental health issues.

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Ozone Layer Damage

Air pollution, especially from chemicals, has created a hole in the protective ozone layer, which leads to increased harmful radiation reaching Earth.

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Pollution Control Goal 1

Controlling pollution significantly reduces the risk of diseases like cancer, heart attacks, and lung problems.

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Pollution Control Goal 2

Businesses are legally responsible for the pollution they create, so controlling it reduces their liability.

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Pollution Control Devices

To avoid legal issues and protect the environment, businesses must use pollution control devices to reduce harmful emissions.

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Cost Savings & Waste

Improper production methods leading to more waste increase disposal costs and plant cleaning expenses.

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Improved Public Image

Businesses that care about the environment gain a positive reputation as socially responsible.

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Other Social Benefits

Pollution control brings advantages like cleaner air, better visibility, and improved quality of life.

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Top Management Commitment

A company's top leaders must be dedicated to creating a work culture that prioritizes environmental protection and pollution prevention.

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Shared Environmental Commitment

Environmental responsibility should be embraced by all divisions and employees within a company.

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Environmental Policies & Programs

Companies need clear plans for using good materials, efficient technology, waste management, and employee training in pollution control.

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Compliance with Environmental Laws

Businesses must follow government regulations and laws designed to prevent pollution.

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Government Programs & Collaboration

Businesses should participate in projects like managing hazardous materials, cleaning polluted areas, planting trees, and tackling deforestation.

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Study Notes

Social Responsibility

  • Social responsibility is an ethical framework where an entity (organisation or individual) acts in the best interest of society.
  • It balances economic needs with environmental considerations.
  • Social responsibility extends beyond legal requirements, encompassing voluntary actions for societal good.

Need for Social Responsibility

  • Improving Company's Brand: A socially conscious company builds a positive brand image and attracts customers.
  • Engaging Customers: Socially responsible policies can influence customer purchasing decisions, potentially increasing revenue.
  • Retaining Top Talent: Companies that prioritize social responsibility attract and retain employees who feel connected to a purpose larger than themselves.
  • Helping Stand Out of Competition: Businesses involved in the community differentiate themselves and build strong relationships, boosting their image.

Arguments for Social Responsibility

  • Protecting Stakeholder Interests: Businesses that consider stakeholder (employee, customer) interests typically experience increased support.
  • Long-Run Survival: Aligning with social goals often benefits a company in the long term.
  • Fulfilling Social Obligations: It's in firms' self-interest to act responsibly to avoid potential negative impacts.
  • Self-Enlightenment: Companies with social awareness are often more motivated to serve societal needs.
  • Avoiding Government Regulation: Companies that proactively address social issues can reduce the need for government intervention.
  • Resources: Businesses possess resources (financial, human) that can be applied to societal issues.
  • Professionalisation and Better Environment: Businesses contribute to a better society through professional management and ethical conduct.
  • Holding Businesses Responsible for Social Problems: This can be seen as a moral and societal obligation.
  • Converting Problems into Opportunities: Businesses address societal problems while identifying and exploiting possible solutions for a better, profitable future.

Arguments Against Social Responsibility

  • Violation of Profit Maximisation Objective: Some view social responsibility as counter to the fundamental goal of maximizing profits.
  • Burden on Consumers: Increased costs for social responsibility may be passed onto consumers through higher prices.
  • Lack of Social Skills: Businesses may not possess the expertise to solve complex societal problems effectively.
  • Lack of Broad Public Support: Public resistance to business involvement in certain social programs can limit success.

Reality of Social Responsibility

  • Businesses operate in a challenging and complex world. Navigating expectations of different stakeholders and pressures from the public influences the reality of social responsibility.

Kinds of Social Responsibility

  • Economic: Businesses produce goods/services that society wants, then sell them profitably.
  • Legal: Businesses abide by the laws and regulations of the land.
  • Ethical: Businesses operate according to societal expectations even if not legally required.
  • Discretionary: Businesses voluntarily engage in activities that benefit society (e.g., community involvement).

Social Responsibility towards Different Interest Groups

  • Shareholders/Owners: Businesses provide shareholders with accurate information, fair returns, and future growth schemes.
  • Workers: Businesses provide safe and fair working conditions, appropriate wages, and respect workers' rights.
  • Consumers: Businesses supply goods/services of desired quality and quantity at reasonable prices, respecting consumer rights.
  • Government and Community: Businesses respect the laws and regulations of the country, pay taxes, and operate as a good corporate citizen.

Business and Environmental Protection

  • Pollution: Harmful substances disrupt the natural environment. (Air, Water, Land, Noise)
  • Protection: Protecting the environment is crucial for long-term sustainability.
  • Causes of Pollution: Pollution arises from industrial activities, waste dumping, and various other sources.

Need for Pollution Control

  • Reduced Health Hazards: Pollution correlates with several health issues from heart attacks to lung cancer.
  • Reduced Risk of Liability: Businesses can face financial repercussions for causing environmental damage.
  • Cost Savings: Effective waste management and pollution control can reduce expenses long-term.

Role of Business in Environment Protection

  • Top Management Commitment: Businesses need committed leadership to address environmental issues effectively.
  • Compliance Mechanisms: Establishing clear compliance procedures ensures that ethical business conduct is maintained consistently across the organization.
  • Employee Involvement: Workers are vital to implement and promote environmental policies, making them a critical part of the solution.
  • Measuring Results: Measuring success and impact is essential to understand and improve environmental strategies.

Business Ethics

  • Business ethics involves principles of right action in a business context.
  • It’s crucial for long-term success and positive public perception.

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