I.

SOCIAL RESPONSIBILITY
Defiuition: Social responsibility refers to the obligation of a business to accomplish its objectives by
oDerating in a principled manner in order to promote the welfare of the people at large and not
cause any harm to the society in any way.

Kinds of Social Responsibility:

.Economic responsibility is the primary responsibility of a business enterprise and relates to production
of goods and services as per the needs and wants of the society and selling them at a profit.
Legal responsibility means that every business must operate within the laws of the land.
.Ethical responsibility relates to the purely voluntary obligation of the business enterprise to
adopt moral responsibility that is expected by society but not codified in law.
Discretionary responsibility refers to the obligations assumed by a business enterprise which is
purely voluntary in nature.

Social Responsibility Towards Different Interest Groups

Shareholders Or Workers Consumers Government And

Owners Community
The business should offer A business
The prime A business enterprise must
objective of enterprise must good quality goods and
offer substantial services for sale. At the abide by the laws
shareholders
or owners of work opportunities same time they should of the country.
a business to the workers. not be under weight or A business
organisation to I n order to under measured. enterprise
promote their The business must must fulfill its
invest capital in
job satisfaction not indulge in any obligation to pay
pursuit of fair
returns must be and loyalty, kind of unfair trade taxes regularly
practices. They should and honestly.
fulfilled. Moreover, good working
the safety of their conditions should endorse fair and honest A business
be provided to the advertisements, avoid enterprise must
investment must
adulteration of products, operate within the
be ensured. workers.
offer efficient service and ethical framework
The shareholders The workers must
be allowed to so on. laid down by the
should be
furnished regular, form unions as it The business must ensure society.
accurate and full is their democratic complete and accurate A business
information about right.
disclosure of information enterprise
The terms and about the various must display
the working of concern towards
the organisation conditions of products and services to
the prospective buyers environment.
and should also appointment
be kept well- as well as They must not hide any A business
detail about the product enterprise must
informed about its remuneration

offered to the which is likely to affect strive to create

growth prospects a good public
and future plans. workers should be the decision of a prudent
fair and justified. buyer image.
 Corporate social responsibility as per the Companies Act 2013

As per the Companies Act 2013, with effect from April 1, 2014, every company, private
limited or public limited, which either has a net worth of ? 500 crore or a turnover of 7 1.000
crore or net profit of ? 5 crore, needs to spend at least 20 of its average net profit of the
immediately preceding three financial years on corporate social responsibility activities. A
Corporate Social Responsibility Committee of the Board consisting of three or more directors,
out of which at least one director shall be an independent director is to be constituted. The
CSR activities include Promotion of education; Gender equity and women empowerment;
Eradication of extreme hunger and poverty; Reducing child mortality and improving maternal
health, Combating HIV-AIDS, malaria and other diseases; Environmental sustainability;
Employment enhancing vocational skills; Contribution to Prime Minister's relief fund and
other such state and central funds; Social business projects. Contribution to any political party
is not considered to be a CSR activity and only activities in India would be considered for
computing CSR expenditure.

Arguments for the assumption of social responsibilities by business

. Justification for existence and growth of a business depends upon its ability to provide goods
and services to satisfy human needs and wants. Thus, the survival and prosperity of a business
is based on its utility and approval from the society
. Long-term interest of the firm can be ensured only when it is able to fulfill its responsibility
tovards different interest groups like workers, consumers, shareholders, government officials, etc.
and create a positive image.
Avoidance of government regulation in the business can be ensured by business only ifit
voluntarily undertakes social responsibilities, else the legal interventions are likely to create an
adverse effect on the working of a business.
Maintenance of society can be safeguarded only if the business enterprises assume their
and do not indulge in any kind of anti-social activities. It is also not possible
responsibility to
situations.
pass laws for all possible undesirable
Availability of resources with business of all kinds like human, physical and financial further
accentuates the need for business institutions to help society to tackle its problems better.
Converting problems into opportunities can be effectively done by business by converting

risky situations into profitable deals like producing environmental friendly products, creating
employment opportunities, etc.
which
Better environment for doing business can be created only if the existing businesses
operate within in a society provides an environment which is conducive to business. A business
is unlikely to flourish in a society which is full of problems.
Business is held responsible for social problems like insecure work environment, exploitation
in public enterprises, and gender inequality, etc. which have either surfaced because of wrong
of business
business practises or sometimes even propagated by them. Therefore, moral obligation
it on other social organisations to
is to take a lead in solving these problems instead of leaving
resolve them.
 as
for
The
global
Defnition:
it II. ENVIRONMENTAL PROTECTION
usis
dangerous
ition:
various
these
water, air, The
The and flora and raw materials) and man-made (cultural heritage, socio-economic
air,warming.
leading
fauna
faun
levels
and days
the people).
institutions causes
to
of
Role of Businessenvironment
in Environmental Protection:
The top management of the enterprise must be committed to create, maintain and develop
environmental friendly practises.
like
is
All the divisions and employees of the enterprises must share this commitment towards
environmental protection anddefined
lakes, prevention.
pollution
.Thepolicies of the enterprise should ensure environmental protection while carrying out all the
funcions. Like, good quality raw material
as should be purchased, efficient technology should be
rivers, skill
employed to ensure appropriate disposaltheand treatment of wastes. Moreover, the necessary
and sensitivity should be developed in the employees.
must comply with the laws totality
and regulations enacted by the Government for
The enterprises
prevention of pollution.
of
and
initiatives of the govenment like
The business enterprises must participate in variousfertility
conservation of water, paperless functioning, controlling global warming, promoting use of
man's
the
alternate sources of energy, etc. of
benefits so as
A periodical assessment of pollution control programmes in qualitythe of costs and
terms
the
with respect to environmental protection should be undertaken by
to increase the progress soil
surroundings-
business enterprises.
.In order to get suppliers, dealers and
customers actively involvedpollution control programmes
in
material relating
educational workshops must be organised by the business concerns and training
to technical information and experience may
be shared with them. both

natural
IIL. POLLUTION
(land,
injection of harmful substances into the environment.
Definition: Pollution refers to the

Causes of pollution
Water pollution Land pollution Noise pollution
Air pollution
Air pollution is Water pollution Land pollution .Noise created
refers to the is caused due to by the running
one of the prime
injection of the dumping of of vehicles and
causes of concern
harmful substances harmful wastes. factories is not
in the water bodies This adversely just a source of
affects both the annoyance but also
a serious health
etc.
The prime cause of hazard.
water pollution is of the agriculturalItis responsible for
of air pollution are
many diseases like
growing vehicular dumping of toxic output.
chemicals and loss of hearing
traffic, emittance malfunctioning of
of chemicals from wastes. This poses
a severe threat to the heart, mental
industries and so
not only aquatic disorder, etc.
on
plants and animals
but also human
life.
Need for Pollution Control:
Reduction of health hazards like cancer, heart attacks and lung complications are caused
by pollutants in the environment and the quality of life can be improved only by taking
stringent measures to control pollution.
Reduced risk of liability of a business enterprise as by adopting best business practises
(installing a pollution control device) to curb pollution at the first place, a business is saved
rom the burden of paying compensation to people afected by its hazardous activities like

releasing toxic gases, solid wastes into the environment.

Cost savings can be done by a business by following appropriate production technology
which incorporates effective pollution control measures rather than unaertaking expensive
activities in the later stages for waste disposal and cleaning the factory.

Improved public image of a business can be established only by promoting environmental

of people
business policies and practices keeping in view the growing concern
friendly
towards the environment.
Other social benefits like better quality of air, improved visibility,
untarnished buildings
be realised by making conscious efforts to
and monuments, healthier quality of life, can

control pollution.