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MCO-04 Unit 4 Notes

The document discusses the interdependent relationship between business and society, highlighting the mutual dependence and dynamic interactions that exist. It outlines the evolution of business objectives from profit maximization to incorporating social responsibility, emphasizing ethical practices and public expectations. Additionally, it addresses challenges in maintaining ethical standards and the government's role in regulating business-society relations.

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deepak asnora
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2 views3 pages

MCO-04 Unit 4 Notes

The document discusses the interdependent relationship between business and society, highlighting the mutual dependence and dynamic interactions that exist. It outlines the evolution of business objectives from profit maximization to incorporating social responsibility, emphasizing ethical practices and public expectations. Additionally, it addresses challenges in maintaining ethical standards and the government's role in regulating business-society relations.

Uploaded by

deepak asnora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MCO-04 Unit 3 Notes: Social Responsibility of Business

1. Meaning of Business and Society

Business: An economic activity that involves the production and exchange of goods and services to earn

profit.

Society: A community of individuals bound by shared institutions, relationships, culture, and norms.

Business and Society Relationship: Interdependent. Business needs society for resources and markets;

society needs business for goods, services, and employment.

2. Nature of Business-Society Relationship

- Mutual Dependence

- Dynamic Relationship

- Continuous Interaction

- Multidimensional (economic, legal, ethical, philanthropic responsibilities)

3. Business Objectives and Social Goals

Traditional view: Profit maximization.

Modern view: Social responsibility + profit.

Objectives include:

- Quality goods at fair prices

- Employment generation

- Community welfare

- Environmental protection

- Ethical practices

4. Public Expectations from Business

- Produce quality and safe products

- Offer fair wages and job security

- Avoid exploitation

- Protect environment

- Pay taxes honestly


MCO-04 Unit 3 Notes: Social Responsibility of Business

- Contribute to social welfare

5. Social Justice and Business

Businesses are expected to promote equitable distribution of income and opportunities.

They must:

- Remove discrimination

- Ensure fair treatment

- Support weaker sections

- Avoid unfair trade practices

6. Business Ethics

Ethics: Principles that guide business behavior.

Ethical business practices:

- Honesty in advertising

- Fair pricing

- No adulteration or black marketing

- Transparency in accounting

7. Challenges in Maintaining Ethical Standards

- Competitive pressures

- Cost considerations

- Weak ethical culture

- Conflict between short-term gains and long-term reputation

8. Role of Government in Business-Society Relations

Government roles include:

- Regulating businesses through laws (labor, consumer protection, environment)

- Promoting welfare via policy

- Encouraging ethical practices


MCO-04 Unit 3 Notes: Social Responsibility of Business

- Mediating industrial disputes

Conclusion

Business and society are deeply interconnected. Ethical and responsible businesses support societal

development, and society, in return, provides a conducive environment for business success.

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