Class 11 Business Studies - BIHAR
Social Responsibilities of Business and Business Ethics
This chapter explores the vital relationship between business enterprises and society. For Class 11 Bihar Board (BSEB) students, it covers why earning profit alone is not enough and why businesses must act responsibly toward various interest groups like owners, employees, consumers, government, and the community. It also introduces business ethics, moral values, and corporate social responsibility (CSR). This is a scoring theoretical chapter frequently tested through short-answer questions, long-answer essay questions, and case studies in board exams.
Start Learning FreeKey Concepts
Social Responsibility of Business
The obligation of business decision-makers to take actions that protect and improve the welfare of society as a whole, alongside pursuing their own economic interests.
Arguments for Social Responsibility
Points supporting social action, including long-term self-interest, maintenance of society, avoidance of government regulation, and conversion of problems into business opportunities.
Arguments against Social Responsibility
Viewpoints suggesting businesses should focus strictly on profit maximization, as social involvement adds extra costs, dilutes business purpose, and requires special social skills businesses may lack.
Responsibility towards Different Interest Groups
Specific duties owed by a business to owners (fair return), investors (safety of funds), employees (fair wages and safe conditions), consumers (quality and fair price), and government (tax compliance).
Business Ethics
A set of moral principles and standards that govern the behavior of business persons, distinguishing between what is right and wrong in commercial dealings.
Corporate Social Responsibility (CSR)
A self-regulating business model whereby companies make a concerted effort to operate in ways that enhance society and the environment, often mandated legally for larger firms.
Important Formulas
Board Exam Info
In the Bihar Board (BSEB) Class 11 Business Studies examination, this chapter typically carries around 6 to 10 marks. Questions usually include objective type (MCQs), short-answer questions defining ethics or CSR, and long-answer questions detailing the social responsibility of business towards different interest groups.
Frequently Asked Questions
Is social responsibility compulsory for all businesses?
While moral social responsibility is voluntary, many aspects like consumer protection, environmental laws, and CSR spending for large companies are legally compulsory under government regulations.
What is the difference between legal responsibility and ethical responsibility?
Legal responsibility involves obeying the written laws of the land, whereas ethical responsibility includes moral norms and societal expectations that may not be codified into strict laws.
Why should a business be socially responsible if its main goal is profit?
A business operates using society's resources, infrastructure, and human capital. Therefore, giving back to society ensures long-term survival, good reputation, and a stable operating environment.
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