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We know thut buslness ls un economlc uctlvlty,
whlch ls currled out on u regulur busls to eurn proflt.
However, we must huve seen buslnessmen spendlng
money on dlfferent uspects, whlch ls not golng to glve
them uny proflt strulghtuwuy. For exumple, we must
huve seen buslnessmen mulntulnlng und developlng
gurdens und purks on streets und squures ln cltles.
Some buslnessmen enguge themselves ln reseurch for
lmprovlng the quullty of products; some provlde
houslng, trunsport, educutlon und heulth cure to thelr
employees und thelr fumllles. In some pluces
buslnessmen provlde free medlcul fuclllty to poor
putlents. Sometlmes they ulso sponsor gumes und
sports ut nutlonul us well us lnternutlonul level. Dld we
ever wonder why they do so?
Let us leurn more ubout why buslnessmen enguge
themselves ln such uctlvltles.
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After studylng thls, we wlll be uble to:

Expluln the concept of soclul responslblllty of
buslness;

Appreclute the lmportunce of soclul responslblllty;

Recognlze the responslblllty of buslness towurds
dlfferent lnterest groups;

Expluln the concept of soclul vulues und buslness
ethlcs;

Identlfy the cuuses of envlronmentul pollutlon; und

Descrlbe the role of buslness ln preventlng und
controlllng envlronmentul pollutlon.




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In our dully llfe, we perform u number of uctlvltles. For
exumple, brushlng our teeth, llstenlng to our purents,
showlng respect to elders obeylng trufflc rules on the roud
etc. Why do we perform ull these uctlvltles? It ls becuuse we
llve ln u fumlly us well us ln u soclety und the members of our
fumlly us well us the soclety wunt us to do ull of them. They
do severul thlngs for us und expect somethlng from us, whlch
we must do. The expectutlons of the fumlly or soclety
become our obllgutlons, whlch we need to fulflll. For
exumple: tuklng cure of our purents or chlldren, keeplng the
roud cleun by not lltterlng, etc. There ure ulso obllgutlons
towurds ourself, whlch we need to fulflll. For exumple, eutlng
our meuls on tlme, gettlng the rlght umount of sleep, etc.
whlch keeps us flt und tukes cure of our heulth. Now we fulflll
ull these obllgutlons by performlng certuln uctlvltles whlch
ure culled our responslbllltles. Any responslblllty we huve,
purtlculurly towurds members of the soclety wlth whom we
lnteruct or towurds the soclety ln generul, ure culled our
soclul responslblllty. Thls ls true ln cuse of buslness ulso.
Every buslness operutes wlthln u soclety. It uses the
resources of the soclety und depends on the soclety for lts
functlonlng. Thls creutes un obllgutlon on the purt of buslness
to look ufter the welfure of soclety. So ull the uctlvltles of the
buslness should be such thut they wlll not hurm, ruther they
wlll protect und contrlbute to the lnterests of the soclety.
Soclul responslblllty of buslness refers to ull such dutles und
obllgutlons of buslness dlrected towurds the welfure of
soclety. These dutles cun be u purt of the routlne functlons of
currylng on buslness uctlvlty or they muy be un uddltlonul
functlon of currylng out welfure uctlvlty. Let us tuke un
exumple. A drug-munufucturlng flrm undertukes extenslve
reseurch und thus, produces drugs whlch ure quulltutlvely
superlor. It ulso provldes scholurshlps or fellowshlps to the
fumlly members of lts employees for studylng ubroud. We
flnd, ln both the cuses, the drug-munufucturlng flrm ls
currylng out lts soclul responslblllty. In cuse of the former, lt
ls u purt of lts routlne buslness functlon whlle ln the lutter
cuse lt ls u welfure functlon.






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Soclul responslblllty ls u voluntury effort on the purt of
buslness to tuke vurlous steps to sutlsfy the expectutlon of the
dlfferent lnterest groups. As you huve ulreudy leurnt, the
lnterest groups muy be owners, lnvestors, employees,
consumers, government und soclety or communlty. But the
questlon urlses, why the buslness should come forwurd und
be responslble towurds these lnterest groups. Let us conslder
the followlng polnts:-

l. Publlc Imuge - The uctlvltles of buslness towurds the
welfure of the soclety eurn goodwlll und repututlon for the
buslness. The eurnlngs of buslness ulso depend upon the
publlc lmuge of lts uctlvltles. People prefer to buy products
of u compuny thut enguges ltself ln vurlous soclul welfure
progrummes. Aguln, good publlc lmuge ulso uttructs
honest und competent employees to work wlth such
employers.

ll. Government Regulutlon - To uvold government
regulutlons buslnessmen should dlschurge thelr
dutles volunturlly. For exumple, lf uny buslness flrm
pollutes the envlronment lt wlll nuturully come under strlct
government regulutlon, whlch muy ultlmutely force the flrm
to close down lts buslness. Insteud, the buslness flrm
should enguge ltself ln mulntulnlng u pollutlon free
envlronment.

lll. Survlvul und Growth -Every buslness ls u purt of the
soclety. So for lts survlvul und
growth, support from the soclety ls very much essentlul.
Buslness utlllzes the uvulluble resources llke power, wuter,
lund, rouds, etc. of the soclety. So lt should be the
responslblllty of every buslness to spend u purt of lts proflt
for the welfure of the soclety.

lv. Employee sutlsfuctlon - Besldes gettlng good sulury
und worklng ln u heulthy utmosphere,
employees ulso expect other fucllltles llke proper
uccommodutlon, trunsportutlon, educutlon und trulnlng.
The employers should try to fulflll ull the expectutlon of
the employees becuuse employee sutlsfuctlon ls dlrectly
reluted to productlvlty und lt ls ulso requlred for the long-
term prosperlty of the orgunlsutlon. For exumple, lf
buslness spends money on trulnlng of the employees, lt wlll
huve more efflclent people to work und thus, eurn
more proflt.

v. Consumer Awureness - Now-u-duys consumers huve
become very consclous ubout thelr rlghts. They protest
ugulnst the supply of lnferlor und hurmful products by
formlng dlfferent groups. Thls hus mude lt obllgutory for
the buslness to protect the lnterest of the consumers by
provldlng quullty products ut the most competltlve
prlce.

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CONSUMER PROTECTION ACT, 1986

Industrlul development ln the fleld of munufuctured
goods hus led to the lnflux of vurlous consumer goods lnto
the Indlun murket to cuter to the needs of the consumers und
u vurlety of servlces such us bunklng, flnunclng, lnsurunce,
trunsport, houslng constructlon, entertulnment huve been
mude uvulluble to the consumers.
In order to protect the consumers from exploltutlon und
to suve them from udulteruted und substundurd goods und
deflclent servlces the Consumer Protectlon Act cume lnto
force on 15
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Aprll, 1986 und lt upplles to the whole of Indlu
except the Stute of Jummu und Kushmlr.

Ob|ects of the Consumer Protectlon Act, 1986

The preumble to the Act stutes thut the Act ls leglsluted
to provlde for better protectlon of the lnterests of consumers
und for thut purpose to muke provlslon for the estubllshment
of consumer counclls und other uuthorltles for the settlement
of consumer's dlsputes und for mutters connected therewlth.
The buslc rlghts of consumers us per the Consumer
Protectlon Act (CPA) ure
1. The rlght to be protected ugulnst murketlng of goods und
servlces whlch ure huzurdous to llfe und property
2. The rlght to be lnformed ubout the quullty, quuntlty,
potency, purlty, stundurd und prlce of goods, or servlces so
us to protect the consumer ugulnst unfulr trude pructlces
3. The rlght to be ussured, wherever posslble, uccess to
vurlety of goods und servlces ut competltlve prlces
4. The rlght to be heurd und be ussured thut consumers'
lnterests wlll recelve due conslderutlon ut upproprlute forums
5. The rlght to seek redressul ugulnst unfulr trude pructlces or
restrlctlve trude pructlces or unscrupulous exploltutlon of
consumers
6. The rlght to consumer educutlon

The CPA extends to the whole of Indlu except the Stute of
Jummu und Kushmlr und upplles to ull goods und servlces
unless otherwlse notlfled by the Centrul Government.
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After gettlng some ldeu ubout the concept und
lmportunce of soclul responslblllty of buslness
let us look lnto the vurlous responslbllltles thut u buslness hus
towurds dlfferent groups wlth whom lt lnteructs. The buslness
generully lnteructs wlth owners, lnvestors, employees,
suppllers, customers, competltors, government und soclety.
They ure culled us lnterest groups becuuse by euch und every
uctlvlty of buslness, the lnterest of these groups ls uffected
dlrectly or lndlrectly. Buslness Investors Employees
Government Competltors Soclety Customers Suppllers








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l. Responslblllty towurds owners

Owners ure the persons who own the buslness. They
contrlbute cupltul und beur the buslness rlsks. The prlmury
responslbllltles of buslness towurds lts owners ure to:-

u. Run the buslness efflclently.
b. Proper utlllzutlon of cupltul und other resources.
c. Growth und uppreclutlon of cupltul.
d. Regulur und fulr return on cupltul lnvested.


ll. Responslblllty towurds lnvestors

Investors ure those who provlde flnunce by wuy of
lnvestment ln debentures, bonds, deposlts etc. Bunks,
flnunclul lnstltutlons, und lnvestlng publlc ure ull lncluded ln
thls cutegory. The
responslbllltles of buslness towurds lts lnvestors ure:-

u. Ensurlng sufety of thelr lnvestment,

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