CBSE Class 11 Business Studies Chapter 6: Social Responsibilities of Business and Business Ethics - NCERT Solutions

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This chapter delves into the crucial concept of Social Responsibilities of Business and Business Ethics for Class 11 Business Studies students. It explores the multifaceted relationship between businesses and society, emphasizing that businesses operate within a social context and must acknowledge their obligations beyond mere profit-making. The solutions cover the broader scope of social responsibilities compared to legal duties, the impact of societal problems on business success, and the inherent skills of business people in addressing certain social issues. It also highlights the importance of businesses acting as responsible citizens and the collaborative efforts needed for environmental protection. These NCERT Solutions provide clear explanations and answers to multiple-choice questions, aiding students in understanding the ethical dimensions and societal obligations of modern businesses, which is vital for exam preparation and developing a holistic view of business operations.

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Quick info

BoardCBSE
ClassClass 11
SubjectBusiness Studies
Session2026
LanguageEnglish
TypeNCERT Solutions
ChapterChapter 6

Chapter summary

Chapter 6 of CBSE Class 11 Business Studies focuses on the social responsibilities and ethical conduct expected of businesses. The NCERT Solutions provided here clarify the distinction between social and legal responsibilities, highlighting that social duties are often broader. It examines how societal challenges influence business success and the capacity of business professionals to contribute to solving social problems. The solutions also underscore the importance of businesses acting as good citizens and the necessity of collective action, involving businesses, government, and the public, for environmental protection. This chapter is essential for understanding the ethical framework and societal impact of business activities.

Learning outcomes

  • Understand the concept of social responsibility in business.
  • Differentiate between social and legal responsibilities of a business.
  • Analyze the relationship between societal problems and business success.
  • Recognize the role of business people in solving social issues.
  • Appreciate the importance of businesses acting as responsible citizens.
  • Understand the need for collective efforts in environmental protection.

Topics covered

Paper topics

  • Social Responsibility of Business
  • Legal Responsibility of Business
  • Broader Scope of Social Responsibility
  • Societal Problems and Business Success
  • Business Skills in Solving Social Issues
  • Business as a Good Citizen
  • Responsibility towards Community
  • Environmental Protection
  • Pollution Types
  • Business Ethics

Important topics

  • Social vs. Legal Responsibilities
  • Business's Role in Society
  • Environmental Protection Efforts
  • Ethical Conduct in Business
  • Stakeholder Responsibilities

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Questions and Solutions

Question 1

1. Social responsibility is
  1. Same as legal responsibility
  2. Broader than legal responsibility
  3. Narrower than legal responsibility
  4. None of them
Solution: Social responsibilities of companies are generally broader than their legal responsibilities. While businesses are legally bound to follow specific laws and regulations, their social responsibilities include ethical considerations and voluntary actions that contribute to societal well-being, even if not explicitly mandated by law. Therefore, social responsibility encompasses a wider scope.

Question 2

2. If a business is to operate in a society which is full of diverse and complicated problems, it may have
  1. Little chance of success
  2. Great chance of success
  3. Little chance of failure
  4. No relation with success or failure.
Solution: A business operating in a society laden with diverse and complicated problems faces significant challenges. Such an environment can hinder operations, increase costs, and create uncertainty. Therefore, it is more likely that the business will have a greater chance of success if the society has fewer problems, as a stable and supportive societal context is crucial for business survival and prosperity.

Question 3

3. Business people have the skills to solve
  1. All social problems
  2. Some social problems
  1. No social problems
  2. All economic problems
Solution: Business people possess unique skills in management, resource allocation, and problem-solving that can be effectively applied to address certain social problems. However, they cannot solve all social problems independently. Issues like environmental pollution, child labor, and poverty often require a multi-faceted approach involving government regulation, community participation, and non-governmental organizations alongside business efforts.

Question 4

4. That an enterprise must behave as a good citizen is an example of its responsibility towards
  1. Owners
  2. Workers
  3. Consumers
  4. Community
Solution: When an enterprise is expected to behave as a good citizen, it refers to its responsibility towards the community. A business is an integral part of society and has an obligation to contribute positively to the community's welfare and uphold societal norms, even if these actions are not directly linked to its immediate business operations or profitability.

Question 5

5. Environmental protection can best be done by the efforts of
  1. Business people
  2. Government
  3. Scientists
  4. All the people
Solution: Environmental protection is a complex issue that requires a concerted effort from all segments of society. While businesses can implement sustainable practices, governments can enforce regulations, and scientists can develop solutions, the active participation and cooperation of all individuals are crucial for achieving meaningful and lasting environmental protection.

Question 6

6. Carbon monoxide emitted by automobiles directly contributes to
  1. Water pollution
  2. Noise pollution
Solution: Carbon monoxide (CO) is a gas emitted primarily from the incomplete combustion of fossil fuels, such as those in automobile engines. This emission directly pollutes the air, contributing to air pollution, which can have adverse effects on human health and the environment. It does not directly cause water or noise pollution.

Common mistakes

  • Confusing social responsibility with legal responsibility.
  • Underestimating the impact of societal problems on business.
  • Believing businesses alone can solve all social problems.
  • Overlooking the necessity of collective action for environmental issues.

Revision tips

  • Clearly distinguish between social and legal responsibilities with examples.
  • Focus on the interconnectedness of business and society.
  • Understand the multi-stakeholder approach to social issues.
  • Review the role of ethics in business decision-making.
  • Practice the MCQs to reinforce key concepts.

Practice MCQs

Q1. What is the relationship between social responsibility and legal responsibility for a business?

Q2. If a business operates in a society with many complex problems, what is its likely chance of success?

Q3. Business people possess the skills to address which type of social problems?

Q4. The principle that an enterprise must behave as a good citizen is an example of its responsibility towards which group?

Q5. Who is best equipped to handle environmental protection efforts?

Q6. Carbon monoxide emitted by automobiles is a direct contributor to which type of pollution?

Frequently asked questions

What is the main difference between social and legal responsibilities of a business?

Legal responsibilities are mandatory actions dictated by law, while social responsibilities are broader obligations that businesses undertake voluntarily or ethically for the welfare of society, often going beyond legal requirements.

How do societal problems affect a business?

Societal problems can significantly impact a business's success. Businesses are more likely to thrive in societies with fewer complex issues, as a stable environment is conducive to operations and growth.

Can businesses solve all social problems?

No, businesses have the skills to address some social problems, but many complex issues like environmental pollution or child labor require government intervention and collective efforts from all sections of society.

Why is it important for a business to act as a good citizen?

Acting as a good citizen means contributing positively to the community and society. This builds goodwill, enhances reputation, and fosters a supportive environment for the business, even if these actions aren't directly related to profit.

Who is responsible for environmental protection?

Environmental protection is a shared responsibility. While businesses, government, and scientists play crucial roles, the combined efforts of all people are essential for effective environmental conservation.

What does Chapter 6 of Business Studies cover?

Chapter 6 covers the social responsibilities and ethical considerations of businesses, exploring their obligations to society, the impact of societal issues, and the importance of ethical conduct and environmental stewardship.

Important links

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