NCERT Class 11 Business Studies Business Studies: Chapter 6 — Social Responsibilities of Business and Business Ethics
This chapter, "Social Responsibilities of Business and Business Ethics," for Class 11 Business Studies, explores the crucial role businesses play in society. It defines social responsibility as an enterprise's obligation to make decisions and take actions that align with societal objectives and values, balancing profit motives with societal aspirations. The chapter contrasts socially desirable practices like fair dealing, good working conditions, and environmental protection with socially undesirable ones such as misleading advertisements and pollution. It emphasizes that ethical and responsible behavior leads to durable success and a positive business image. The learning objectives include understanding the concept, need, and responsibilities towards various interest groups, as well as the relationship between business and environmental protection, and the elements of business ethics. This knowledge is vital for students aiming for a comprehensive understanding of modern business practices within the CBSE curriculum.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 11 |
| Subject | Business Studies |
| Book | Business Studies |
| Chapter | Chapter 6 — Social Responsibilities of Business and Business Ethics |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 3 minutes |
| Word count | 468 |
Learning outcomes
- Explain the concept of social responsibility in business.
- Discuss the necessity of social responsibility for enterprises.
- Identify the social responsibilities towards different stakeholder groups.
- Analyze the connection between business activities and environmental protection.
- Define business ethics and outline its key elements.
Vocabulary
| Word | Meaning |
|---|---|
| Malpractices | Improper or illegal behavior, especially by a professional person or organization. |
| Adulterated | To make something poorer in quality by adding another substance. |
| Misleading advertisements | Advertisements that deceive or are likely to deceive the consumer. |
| Social responsibility | An ethical framework that suggests a business should act in a way that benefits society. |
| Ethically upright | Morally correct and honest. |
| Profitable | Yielding financial gain or profit. |
| Socially desirable practices | Actions that are considered beneficial or acceptable by society. |
| Socially undesirable practices | Actions that are considered harmful or unacceptable by society. |
| Exploiting | Treating someone unfairly in order to benefit from their work. |
| Aspirations | Hopes and ambitions. |
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Practice questions
- What is meant by the social responsibility of business? Answer: It refers to the obligation of a business to take decisions and perform actions that are desirable in terms of the objectives and values of society.
- Give two examples of socially undesirable practices by businesses. Answer: Manufacture and sale of adulterated goods, making deceptive advertisements, polluting the environment, and exploiting workers.
- What is the relationship between socially responsible behavior and business success? Answer: Socially responsible and ethically upright behavior can improve the image of enterprises and lead to durable success.
- What does it mean for a business to be 'ethically upright'? Answer: It means conducting business in a morally correct and honest manner, adhering to ethical principles.
Frequently asked questions
What is the core idea of social responsibility in business?
It means businesses should operate in ways that benefit society and respect its values, alongside pursuing profits.
Can a business be both profitable and socially responsible?
Yes, the chapter suggests that socially responsible and ethical behavior can lead to durable success and profitability.
What are some examples of socially undesirable business practices?
Examples include selling adulterated products, using misleading advertisements, polluting the environment, and exploiting workers.
Why is it important for businesses to consider societal expectations?
Businesses operate with society's permission and must fulfill its expectations to maintain a good image and achieve long-term success.
What does 'business ethics' refer to?
Business ethics refers to the principles and standards that guide business behavior, ensuring it is morally correct and fair.
What is the connection between business and environmental protection?
Businesses have a responsibility to protect the environment by preventing pollution and adopting sustainable practices.
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Topics covered
NCERT Class 11 Business Studies — Business Studies — Chapter 6 — Social Responsibilities of Business and Business Ethics. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.