Theory question 106
Business Environment and Social ResponsibilityCommerce 2 (answer any five questions)
Explain the social responsibilities of a business to the following:
(a) the community
(b) the employee
(c) the shareholders
(d) the government
(e) the consumers
Show the model answer
(a) Community: provide amenities such as roads, water, scholarships and health centres; avoid pollution and protect the environment; employ local people; support community projects.
(b) Employees: fair wages and prompt payment; safe and healthy working conditions; training and promotion; welfare such as medical care, housing, pension; respect for workers' rights and unions.
(c) Shareholders: fair returns (dividends) on their investment; protect and grow their capital; honest accounts and information, annual general meetings; efficient management.
(d) Government: pay taxes and levies promptly; obey laws and regulations; support government policies and economic development; give correct returns and information.
(e) Consumers: goods of good quality and standard at fair prices; correct information/labelling; safe goods; regular supply; after-sales service; attend to complaints.
Two or three responsibilities for each group.