Social Responsibility of Business and Business Ethics
Social Responsibility
Social responsibility refers to the obligation of business enterprises to consider the interests of stakeholders and society while conducting business activities. Stakeholders include owners, employees, consumers, government, suppliers and the wider community.
Arguments for Responsibility
Businesses depend on society for resources, customers and infrastructure. Responsible practices can reduce harmful external effects, strengthen stakeholder relationships and support long-term sustainability.
Environmental Responsibility
Businesses can reduce waste, conserve resources, improve energy efficiency, control pollution and adopt safer production practices.
Business Ethics
Business ethics are principles and standards that guide morally appropriate business behaviour. Ethical conduct includes honesty, fairness, transparency, respect for stakeholders and compliance with law.
Explained MCQs
- Is obeying the law exactly the same as business ethics?
Answer: No.
Explanation: Legal compliance is essential, but ethical decision-making can also require businesses to consider fairness, honesty and stakeholder impacts beyond minimum legal requirements. - Why is environmental responsibility relevant to business?
Answer: Business activity can affect natural resources and communities.
Explanation: Resource use, waste and pollution can create costs for society and affect long-term business sustainability.