Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 17 Social Responsibility of Business and Business Ethics Notes

→ A business entity carries out economic activities on a regular basis to earn profit.

→ “Social Responsibility refers to the obligation to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of objectives and values of our society.” -Howard R.

→ “Social Responsibility requires managers to consider whether their action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony”. – Peter F. Drucker

→ Business is a creation of society and uses the resources of society.

→ A business can improve its image in public by assuming social obligations.

→ A business enterprise which accepts and discharges social obligations enjoys greater freedom.

→ Mahatma Gandhi suggested that “those who own money or property should hold and use it in trust for society.”

→ Business organisations and their managers have proved their competence and leadership in solving economic problems.

→ Professional managers are required to display a keen social sensitivity and serve the society as a whole.

→ Adoption of social responsibility as an objective will help to improve the public opinion of business.

→ Business organisations possess only economic power and not social power.

→ Tampering it with social responsibility would make the decision-making process quite complex and controversial.

→ A business enterprise is basically an economic entity and, therefore, its primary social responsibility is economic i.e., produce goods and services that society wants and sell them at a profit.

→ Investors are those who provide finance by way of investment in debentures, bonds, deposits etc. Banks, financial institutions, and investing public are all included in this category.

→ Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders.

Samacheer Kalvi 11th Commerce Notes