CLASS XI: CHAPTER 6 QUESTION BANK
Social Responsibilities of Business & Business Ethics | 10 Practice Sets
📌 General Instructions for All Sets:
- Maximum Marks: 25 | Time Allowed: 45 Minutes
- Questions 1-5 are objective type carrying 1 mark each (MCQs & Assertion-Reasoning).
- Questions 6-7 are short answer type carrying 3 marks each (30-40 words).
- Questions 8-9 are short answer type carrying 4 marks each (50-80 words).
- Question 10 is a long answer type carrying 6 marks (100-150 words).
- Strictly adhere to the CBSE Competency/Case-Based format.
📄 PRACTICE PAPER - SET 1 (Level: Easy - Fundamental Concepts)
SECTION A (1 Mark Each)
1. Social responsibility of a business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our:
[Case-Based] A business enterprise ensures that it pays its taxes honestly and on time to the government.
2. This is an example of its:[Case-Based] A company voluntarily opens a free hospital for the poor in the village where its factory is located, without any legal pressure.
3. This refers to:4. Assertion (A): Social responsibility is broader than legal responsibility.
Reason (R): Legal responsibility implies merely following the law, whereas social responsibility involves voluntary efforts by a business for the welfare of society.
Reason (R): Legal responsibility implies merely following the law, whereas social responsibility involves voluntary efforts by a business for the welfare of society.
5. Assertion (A): A business has no responsibility towards its employees.
Reason (R): Employees are paid a salary for their work, so the business does not need to provide a safe working environment.
Reason (R): Employees are paid a salary for their work, so the business does not need to provide a safe working environment.
SECTION B (3 Marks Each)
6. Define 'Social Responsibility of Business'. How is it different from 'Legal Responsibility'?
[Case-Based] 'Alpha Electronics' always ensures that it manufactures high-quality goods, charges reasonable prices, and provides excellent after-sales service.
7. Identify the specific interest group 'Alpha Electronics' is fulfilling its responsibility towards. State two more responsibilities towards this group.
SECTION C (4 Marks Each)
8. Explain the 'Economic' and 'Ethical' kinds of social responsibilities of a business with examples.
[Case-Based] "To survive and grow in the long run, a business must assume social responsibility."
9. Do you agree? Justify your answer by giving any four arguments in favor of social responsibility.
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Automotives' is a highly respected company. The CEO, Mr. Arjun, believes in balancing profit with purpose. He ensures that all his factory workers are provided with safety gear and fair wages. To keep the investors happy, the company pays regular dividends and provides accurate financial reports. Furthermore, the company strictly follows the pollution control laws set by the State Government and regularly donates a portion of its profits to a local orphanage to uplift the surrounding community.
10. By quoting lines from the paragraph, identify and explain the **four different interest groups** towards whom 'Zeta Automotives' is discharging its social responsibilities.
📄 PRACTICE PAPER - SET 2 (Level: Moderate - Application & Analysis)
SECTION A (1 Mark Each)
1. Producing goods and services that society wants and selling them at a profit is the:
[Case-Based] A company respects the religious sentiments of its employees by respecting their beliefs and avoiding advertisements that might hurt cultural values, even though there is no specific law against it.
2. This represents:[Case-Based] Giving a fair return on capital investment and ensuring the safety of such investment is the responsibility of business towards:
3.
4. Assertion (A): Business enterprises should actively engage in environmental protection.
Reason (R): Environmental pollution causes health hazards, legal liabilities, and destroys the public image of the enterprise.
Reason (R): Environmental pollution causes health hazards, legal liabilities, and destroys the public image of the enterprise.
5. Assertion (A): Business ethics are purely personal choices and have nothing to do with society.
Reason (R): Business ethics refer to the socially determined moral principles which govern business activities.
Reason (R): Business ethics refer to the socially determined moral principles which govern business activities.
SECTION B (3 Marks Each)
6. Define 'Business Ethics'. What is the difference between ethics and law?
[Case-Based] 'GreenLife Ltd.' produces paper but constantly dumps toxic chemical waste into the nearby river, polluting the water supply for the whole town.
7. Identify the specific problem created by 'GreenLife Ltd.' State any two reasons (need) for controlling this problem.
SECTION C (4 Marks Each)
8. Explain the responsibility of a business towards the 'Government' and the 'Community'.
[Case-Based] Critics argue that assuming social responsibility violates the fundamental objective of a business and puts an unfair burden on the consumers.
9. Do you agree with the critics? Explain any three 'Arguments against Social Responsibility' to support their viewpoint.
SECTION D (6 Marks Each)
[Case-Based] 'Sunrise Industries' was facing massive backlash. The CEO realized that the top executives were behaving unethically by accepting bribes from suppliers. To transform the company, the CEO decided to firmly intervene. First, he publicly declared that he is firmly committed to honest practices. Second, he published a formal written document defining exactly what behavior is acceptable and unacceptable for all employees. Third, he established a special 'Ethics Committee' to monitor compliance. Finally, he involved all junior employees in ethics training programs because they are the ones who implement policies on the ground.
10. By quoting lines from the paragraph, identify and explain the **four elements of Business Ethics** adopted by the CEO of 'Sunrise Industries'.
📄 PRACTICE PAPER - SET 3 (Level: Moderate-High - Nuanced Competency)
SECTION A (1 Mark Each)
1. Supplying right quality and quantity of goods and services to consumers at reasonable prices constitutes the responsibility of an enterprise towards:
[Case-Based] A business decides to install expensive pollution control equipment in its factory to avoid future penalties and threats of closure by the pollution control board.
2. This represents the argument for social responsibility known as:3. The injection of toxic substances into the atmosphere, primarily by industrial smokestacks, causes:
4. Assertion (A): It is a reality that businesses today are forced to assume social responsibility.
Reason (R): Growing consumer awareness, threat of public regulation, and pressure from labor movements leave no choice for modern businesses but to act socially responsible.
Reason (R): Growing consumer awareness, threat of public regulation, and pressure from labor movements leave no choice for modern businesses but to act socially responsible.
5. Assertion (A): Ethics is a subjective concept.
Reason (R): What is considered ethical in one society might not be considered ethical in another, though basic moral values remain universally respected.
Reason (R): What is considered ethical in one society might not be considered ethical in another, though basic moral values remain universally respected.
SECTION B (3 Marks Each)
6. Explain 'Discretionary Responsibility' of a business with the help of an example.
[Case-Based] A factory operates heavy, outdated machinery that produces deafening sounds, leading to hearing loss among workers and severe disturbance in the neighboring residential area.
7. Identify the type of pollution. State any two steps the business should take to control it.
SECTION C (4 Marks Each)
8. Explain any four 'Realities of Social Responsibility' that force a business to act ethically in the modern world.
[Case-Based] A large corporation argues that spending millions on a public park is a waste of money that belongs to its shareholders. They argue that social problems should be solved by the government, not businesses.
9. Identify the two specific 'Arguments against Social Responsibility' highlighted here. Explain them.
SECTION D (6 Marks Each)
[Case-Based] 'PureMetals Ltd.' is a highly profitable steel manufacturing company. However, the management realizes that business cannot exist in isolation. They actively invest in social responsibility for several reasons. The CEO states: "By helping society, we build a fantastic public image, which helps us attract the best employees and loyal customers. Furthermore, if we don't voluntarily control our factory emissions, the government will pass strict laws and shut us down. Lastly, we have a massive pool of financial and managerial talent, which gives us the power to solve community problems better than anyone else."
10. By quoting lines from the paragraph, identify and explain the **three specific arguments in favor of social responsibility** highlighted by the CEO of 'PureMetals Ltd.'
📄 PRACTICE PAPER - SET 4 (Level: Hard - Analytical Competency)
SECTION A (1 Mark Each)
1. Which element of business ethics involves drafting a formal written document outlining the principles of conduct to be followed by employees?
[Case-Based] A business enterprise dumps non-biodegradable solid waste on vacant land, making it unfit for agriculture.
2. This leads to:3. Providing a fair, meaningful, and safe working environment relates to the responsibility of the business towards:
4. Assertion (A): A business cannot survive without public support.
Reason (R): A business draws its resources from society and sells its products to society. If it ignores social needs, society will stop supporting it.
Reason (R): A business draws its resources from society and sells its products to society. If it ignores social needs, society will stop supporting it.
5. Assertion (A): Adhering to business ethics always guarantees immediate short-term profit maximization.
Reason (R): Ethical businesses are loved by consumers, allowing them to instantly charge double the price for their products.
Reason (R): Ethical businesses are loved by consumers, allowing them to instantly charge double the price for their products.
SECTION B (3 Marks Each)
6. Differentiate between 'Legal Responsibility' and 'Ethical Responsibility'.
[Case-Based] 'Alpha Builders' decided to construct a school for the children of their construction workers.
7. Which specific kind of social responsibility is this? State one reason why businesses perform this type of responsibility.
SECTION C (4 Marks Each)
8. Explain any four causes of environmental pollution caused by business enterprises.
[Case-Based] A company formulated a brilliant Code of Ethics. However, employees were completely unaware of it, and unethical practices continued.
9. Identify the two elements of business ethics (Involving employees & Compliance mechanisms) missing in this scenario. Explain them.
SECTION D (6 Marks Each)
[Case-Based] The management of 'QuickFoods' was fiercely debated. The Finance Manager argued, "Our only goal is to maximize profits. Social responsibility is a massive financial burden, and the cost will eventually be passed on to the consumers through higher prices. Also, we are business experts, not social workers; we lack the social skills to solve poverty or pollution." The HR Manager countered, "If we don't act responsibly, the government will impose heavy regulations on us. Also, the public image of our firm will improve drastically if we help the community, giving us long-term sustainable growth."
10. By quoting lines from the paragraph, identify and explain the **two arguments AGAINST social responsibility** presented by the Finance Manager, and the **two arguments FOR social responsibility** presented by the HR Manager.
📄 PRACTICE PAPER - SET 5 (Level: Advanced - Evaluation Competency)
SECTION A (1 Mark Each)
[Case-Based] Providing regular and accurate information about the financial health of the company is a responsibility towards:
1.
2. Which of the following highlights the need for pollution control?
[Case-Based] A business decides not to engage in insider trading or accept kickbacks (bribes) from suppliers.
3. This behavior falls under:4. Assertion (A): Protecting the environment provides cost savings to a business.
Reason (R): Efficient production technologies that reduce waste and pollution also consume less raw material and energy, saving money for the firm.
Reason (R): Efficient production technologies that reduce waste and pollution also consume less raw material and energy, saving money for the firm.
5. Assertion (A): The ultimate responsibility for business ethics lies with the junior employees.
Reason (R): The CEO and Board of Directors only make financial plans; they have no role in setting the moral tone of the company.
Reason (R): The CEO and Board of Directors only make financial plans; they have no role in setting the moral tone of the company.
SECTION B (3 Marks Each)
6. "Business needs to protect the environment to improve its public image." Explain this need for pollution control.
[Case-Based] 'SuperCements' failed to pay its income tax and corporate tax for the last two years.
7. Which specific interest group is affected here? State two other responsibilities of the business towards this group.
SECTION C (4 Marks Each)
8. Explain any four steps a business enterprise should take to protect the environment from pollution.
[Case-Based] 'Elite Bank' drafted a comprehensive "Code of Ethics" covering fair trade practices and financial transparency. However, the management failed to set up an audit committee to check if branch managers were actually following it.
9. Identify and explain the two elements of business ethics highlighted (one present, one missing).
SECTION D (6 Marks Each)
[Case-Based] Today, businesses do not operate in a vacuum. A textile factory owner wanted to exploit his workers by paying low wages, but a strong local labor union threatened a massive strike, forcing him to pay fair wages. Furthermore, he tried to release chemical dyes into the river, but modern consumers became aware through social media and boycotted his brand entirely. Finally, he realized that to survive, his business couldn't just chase profits blindly; it had to align its goals with the betterment of society, establishing a new, socially responsible standard.
10. The case above highlights the "Reality of Social Responsibility." By quoting lines from the paragraph, identify and explain the **three specific factors/realities** that forced the textile factory owner to act socially responsibly.
📄 PRACTICE PAPER - SET 6 (Level: Expert - Complex Case Studies)
SECTION A (1 Mark Each)
[Case-Based] A business installs an expensive effluent treatment plant to treat toxic water before releasing it into the river.
1. This fulfills its responsibility towards:2. Which of the following is an argument AGAINST social responsibility?
3. Assertion (A): The development of business education has made managers more socially responsible.
Reason (R): Modern business schools teach that a business is an organ of society, shifting the mindset of managers from pure profit-making to responsible management.
Reason (R): Modern business schools teach that a business is an organ of society, shifting the mindset of managers from pure profit-making to responsible management.
4. Assertion (A): Water pollution is purely a natural phenomenon.
Reason (R): Businesses do not contribute to water pollution; it is caused entirely by heavy rainfall and floods.
Reason (R): Businesses do not contribute to water pollution; it is caused entirely by heavy rainfall and floods.
5. "Better public image" is an argument:
SECTION B (3 Marks Each)
6. Explain 'Top Management Commitment' as a crucial element of business ethics.
[Case-Based] A company continuously produces highly defective products and refuses to handle customer grievances.
7. Which interest group is being exploited? State two specific responsibilities the company must fulfill towards this group.
SECTION C (4 Marks Each)
8. Explain the term 'Environmental Protection'. Why is there a need for pollution control? (Give any three reasons).
[Case-Based] "A business possesses massive financial and human resources which can be effectively utilized for solving social problems."
9. Identify this argument in favor of social responsibility. Explain it along with one more argument in favor of social responsibility.
SECTION D (6 Marks Each)
[Case-Based] 'Global Pharma' wants to build an ethical corporate culture. The Board of Directors explicitly states that "No employee will offer or accept bribes." To ensure everyone understands this, they print a detailed handbook listing rules regarding conflict of interest, product safety, and fair marketing, and distribute it to all staff. Realizing that rules alone aren't enough, they set up an anonymous 'Ethics Hotline' where any employee can report unethical behavior without fear. Furthermore, the management actively asks junior researchers for their opinions on ethical clinical trials. At the end of the year, the company audits its decisions to see if they actually adhered to these ethical standards.
10. By quoting lines from the paragraph, identify and explain the **five elements of Business Ethics** successfully implemented by 'Global Pharma'.
📄 PRACTICE PAPER - SET 7 (Level: Expert - Integrated Concepts)
SECTION A (1 Mark Each)
[Case-Based] A business enterprise ensures it does not discriminate based on gender, religion, or caste while hiring.
1. This fulfills its responsibility towards:2. Which of the following is a cause of 'Land Pollution'?
3. Assertion (A): A socially responsible business can convert problems into opportunities.
Reason (R): Instead of seeing waste generation as a problem, a business can creatively recycle it into a new profitable product, helping both society and itself.
Reason (R): Instead of seeing waste generation as a problem, a business can creatively recycle it into a new profitable product, helping both society and itself.
4. Assertion (A): Social responsibility lacks broad public support.
Reason (R): The public generally opposes businesses engaging in social welfare because they prefer businesses to solely maximize profits for shareholders.
Reason (R): The public generally opposes businesses engaging in social welfare because they prefer businesses to solely maximize profits for shareholders.
5. Measuring the results of ethical programs requires:
SECTION B (3 Marks Each)
6. Differentiate between 'Economic Responsibility' and 'Discretionary Responsibility'.
[Case-Based] A factory owner refuses to install a water-purification plant, stating it will reduce his profit margins. He argues that the burden will ultimately fall on the consumers through increased prices.
7. Identify the two 'Arguments Against Social Responsibility' highlighted here.
SECTION C (4 Marks Each)
8. Explain the term 'Business Ethics'. Why is the involvement of employees crucial at all levels to make ethical programs successful?
[Case-Based] A major mining corporation is planning a new project. They ensure regular dividend payouts to the people who bought their shares. They also construct a well-equipped township with schools and parks for the indigenous tribes living near the mining area.
9. Identify and explain the responsibilities of the corporation towards the two distinct interest groups highlighted in the case.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Chemicals' is a prominent company. To ensure environmental protection, the top management has made a firm, written commitment to be an eco-friendly enterprise. To implement this, they have established strict policies regarding the disposal of toxic waste. They actively participate in government programs to plant trees (afforestation) to clear the air. Periodically, they hire independent auditors to assess their pollution control programs to ensure they are actually meeting their environmental goals. Finally, they continuously hold workshops to educate their factory workers on how to safely handle and recycle hazardous materials.
10. The case above outlines the specific steps taken by 'Alpha Chemicals' for environmental protection. By quoting lines, identify and explain any **four specific steps for environmental protection** undertaken by the company.
📄 PRACTICE PAPER - SET 8 (Level: Advanced Board Mock 1)
SECTION A (1 Mark Each)
1. The basic premise of 'Social Responsibility' is based on the idea that a business operates in a:
[Case-Based] The threat of public regulation is a 'reality of social responsibility'. This means:
2.
3. Assertion (A): Providing a safe working environment is a legal responsibility.
Reason (R): The Factories Act mandates safety standards. Failing to provide them can result in prosecution and closure of the factory.
Reason (R): The Factories Act mandates safety standards. Failing to provide them can result in prosecution and closure of the factory.
4. Assertion (A): Noise pollution is harmless to humans.
Reason (R): Noise from running factories and vehicles causes deafness, anxiety, and mental disorders.
Reason (R): Noise from running factories and vehicles causes deafness, anxiety, and mental disorders.
5. Which of the following is an example of an 'Ethical Responsibility'?
SECTION B (3 Marks Each)
6. Explain 'Publication of a Code' as an element of business ethics.
[Case-Based] An enterprise sells sub-standard goods at very high prices. Due to the rise in consumer education and the power of social media, customers quickly boycotted the enterprise.
7. Identify the 'Reality of Social Responsibility' highlighted here. Explain it briefly.
SECTION C (4 Marks Each)
8. Explain any four kinds of 'Social Responsibility' of a business.
9. "Businessmen are considered trustees of society." Explain this statement with reference to the 'Arguments in favor of Social Responsibility'.
SECTION D (6 Marks Each)
[Case-Based] 'Bright Steel Ltd.' was a major polluter. The local community filed several lawsuits against them, resulting in millions of rupees paid as compensation for causing health hazards. Fearing complete closure, the management decided to act. They realized that installing pollution control devices would not only save them from future lawsuits (reduced risk of liability) but would also drastically improve their terrible public image. Furthermore, they discovered that the new eco-friendly technology consumed 20% less electricity, resulting in massive long-term financial savings. Lastly, the cleaner factory floor boosted employee morale and reduced sick leaves.
10. By quoting lines from the paragraph, identify and explain the **four specific needs for pollution control** that 'Bright Steel Ltd.' realized.
📄 PRACTICE PAPER - SET 9 (Level: Advanced Board Mock 2)
SECTION A (1 Mark Each)
[Case-Based] A business provides timely payment of interest on debentures and ensures the principal amount is returned on maturity.
1. This fulfills its responsibility towards:2. Which of the following is NOT an element of Business Ethics?
3. Assertion (A): Lack of broad public support is an argument against social responsibility.
Reason (R): The public generally does not like business interference in social programs, making it difficult for businesses to solve social problems effectively.
Reason (R): The public generally does not like business interference in social programs, making it difficult for businesses to solve social problems effectively.
4. Assertion (A): Water pollution has led to the death of several animal and plant species.
Reason (R): Dumping toxic chemicals into rivers and lakes destroys aquatic ecosystems.
Reason (R): Dumping toxic chemicals into rivers and lakes destroys aquatic ecosystems.
5. Voluntary actions like donating money to a disaster relief fund fall under:
SECTION B (3 Marks Each)
6. Explain the term 'Corporate Social Responsibility' (CSR) in the modern context.
[Case-Based] A CEO states, "We will not engage in false advertising, not because it's illegal, but because it is fundamentally wrong to cheat our customers."
7. Is the CEO guided by Law or by Ethics? Explain the difference between the two.
SECTION C (4 Marks Each)
8. Explain the responsibility of a business towards its 'Employees' (give four points).
9. Discuss the 'Development of social standard for business' and 'Pressure of labor movement' as realities forcing businesses to assume social responsibility.
SECTION D (6 Marks Each)
[Case-Based] 'Zeta Pharma' has a mixed reputation. Positively, they produce highly effective, life-saving drugs and sell them at a very reasonable price, fulfilling the needs of society while making a fair profit. They also strictly follow all the guidelines set by the Drug Control Authority of India. However, they have completely ignored the local community; they do not run any charitable dispensaries for the poor, nor do they treat their female employees with basic respect, fostering a toxic workplace culture where complaints are ignored.
10. Analyze the actions of 'Zeta Pharma'. Identify and explain the **two kinds of social responsibilities** they are successfully fulfilling (Economic, Legal). Also, identify and explain the **two kinds of social responsibilities** (Discretionary, Ethical) they are completely ignoring.
📄 PRACTICE PAPER - SET 10 (Level: Ultimate Board Challenger)
SECTION A (1 Mark Each)
1. The argument "Holding Business Responsible for Social Problems" implies that:
[Case-Based] An enterprise sets up a 'Whistleblower Policy' where employees can secretly report any fraud happening in the company without getting fired.
2. This is an example of which element of business ethics?3. Assertion (A): It is the responsibility of business to ensure the best possible use of national resources.
Reason (R): Resources are scarce, and if a business wastes them, it is harming the economic growth of the entire nation.
Reason (R): Resources are scarce, and if a business wastes them, it is harming the economic growth of the entire nation.
4. Assertion (A): Social responsibility puts a burden on consumers.
Reason (R): Money spent on social welfare (like building parks) increases the cost of the business, which is ultimately recovered from consumers by increasing product prices.
Reason (R): Money spent on social welfare (like building parks) increases the cost of the business, which is ultimately recovered from consumers by increasing product prices.
5. Which of the following is a responsibility towards the 'Community'?
SECTION B (3 Marks Each)
6. State any three arguments AGAINST social responsibility.
[Case-Based] The CEO of 'EcoWoods' states, "We will measure our success not just by our financial profit, but by how well our employees followed the ethical code during the year."
7. Identify the specific element of business ethics highlighted here. Why is this step difficult but necessary?
SECTION C (4 Marks Each)
8. Explain the responsibility of a business towards: (a) Consumers, and (b) Shareholders/Investors.
9. Explain how 'Air Pollution' and 'Land Pollution' are caused by business activities.
SECTION D (6 Marks Each)
[Case-Based] 'Alpha Tech' is a leading software company. The Board of Directors wants to institutionalize ethics in the company. First, the CEO issues a strong personal statement that zero tolerance will be shown for data theft. Second, the HR department prints a formal 'Code of Conduct' rulebook and makes every employee sign it. Third, they install an automated software system (a mechanism) that instantly flags any unauthorized access to customer data, ensuring the rules are actually followed. Finally, the management realizes that the junior coders are the ones handling the data daily, so they actively ask them for feedback on how to improve data security.
10. By quoting lines from the paragraph, identify and explain the **four elements of Business Ethics** implemented by the management of 'Alpha Tech'.
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