Which of the following Concept Is Characterized by the Legal Responsibility of Business
Measuring a company`s success goes beyond the bottom line. Learn about the four types of corporate social responsibility and what they look like in action. Question 6 What is a businessman`s obligation to the government? Maria Zakharova: Corporate social responsibility vis-à-vis regulators or government agencies is very sensitive from the point of view of licensing. If permission is not granted or revoked abruptly, it can result in significant losses for an organization. Therefore, compliance is necessary in this regard. In addition, a business must also operate within the demarcation of rules and guidelines formulated from time to time by the state or nation government. It should comply with laws and comply with all established regulations while being under the jurisdiction of the state. Some examples of activities that a company can carry out in this regard: The term corporate social responsibility (CSR) refers to corporate practices and policies that are intended to have a positive impact on the world. The key idea behind CSR is that companies pursue other pro-social goals in addition to maximizing profits. Examples of common CSR goals include reducing environmental externalities, encouraging volunteerism among company employees, and donating to charity.
Question 6. “A company has curtain obligations to different groups.” Identify these groups and explain the company`s commitment to these groups. Or explain a company`s social responsibility to different stakeholders. Maria Zakharova: The social responsibility of the government towards the different groups is explained below: Question 4. Explain the company`s obligations to owners and investors. Answer: It is the responsibility of a company to maintain and increase the returns of all its shareholders on key management issues and constantly strives to improve its business performance and financial structure. The company`s dividend policy provides for a stable dividend, and Casio determines the allocation of profits taking into account all factors such as the level of profits, financial position, dividend payout ratio, as well as the company`s future performance and forecasts. Question 3: “The company is responsible for exacerbating pollution, so it becomes the moral duty of businessmen to take positive measures to control this problem.” In light of this statement, explain the role of businessmen in the fight against pollution. Answer: The statement is absolutely correct. In this regard, a businessman can play the following role: Question 5.
Explain the reality of social responsibility. Answer: In reality, there is only a token interest in social responsibility. Some commercial buildings fulfill their legal responsibilities in the name of social responsibility. Some factors and reasons have forced and convinced business organizations to assume their social responsibilities and are as follows: Another potential problem in giving management more rights to pursue social programs is the protection of the interests of minority shareholders who disagree with the majority. Because corporate law is state law, protections for minority shareholders vary widely, but owners of a small number of shares have little or no power to influence the company`s decisions. Some states allow cumulative voting for board seats, which increases the power of minority shareholders. Others allow buy-back or dissolution laws that apply to restricted-owned companies. However, in a large traditional company, none of these protections are likely to apply to minority shareholdings.
Another possibility, of course, is that disgruntled shareholders sell their shares. A recent study by researchers at Princeton and the University of Texas shows that companies benefit from meeting CSR guidelines in several ways.10 These benefits are collectively referred to as the “halo effect” and can add value to the business. For example, consumers often view CSR spending as a proxy that a company`s products are of high quality, and they are also often more willing to buy these products as an indirect way to donate to a good cause. However, some economists such as Milton Friedman, Henry Hazlitt, Adam Smith and others have argued that CSR initiatives based on environmental or social justice rather limit shareholder wealth.11 Nobel laureate economist Milton Friedman (1912-2006) believed that shareholders should be able to decide for themselves which social initiatives they donate or participate in. instead of letting a general manager decide for them. He argued that government regulation and social initiatives allow an external third party to make these decisions for shareholders. Being ethically responsible means ensuring that a company applies fair business practices at all levels, including treating all employees, stakeholders and customers ethically and respectfully. Legal responsibilities are accountable not only to individuals in society, but also to companies in society. Since the company itself is a unit, it must also abide by laws and rules. Each company has the responsibility to operate within the limits set by the various commissions and agencies at all levels of government. These rules and regulations serve to maintain the balance and well-being of society. I.
Multiple Choice Questions Question 1. Social responsibility is (a) like legal responsibility (b) broader than legal liability (c) narrower than legal responsibility (d) None of them Question 2. If companies are to operate in a society full of diverse and complex problems, they may have (a) low chances of success (b) high chances of success (c) low probability of failure (d) have nothing to do with success or failure Question 3. Business people have the skills to: (a) All social problems (b) Some social problems (c) No social problems (d) All economic problems Question 4. The fact that a company must behave like a good citizen is an example of its responsibility to (a) owners (b) employees (c) consumers (d) the community issue 5. The best way to ensure environmental protection is to: a) businessmen, b) government, c) scientists d) all people Question 6. Carbon monoxide emitted by motor vehicles contributes directly to (a) Water pollution (b) Noise pollution (c) Soil pollution (d) Air pollution in question 7. Which of the following statements can explain the need to control pollution? (a) Cost savings (b) Reduction of liability risk (c) Reduction of health risks (d) All questions 8. Which of the following measures is capable of doing the maximum good for society? (a) Success of the enterprise b) Laws and regulations c) Ethics d) Professional management Question 9. Ethics is important for a) senior managers, b) middle managers, c) non-managers, d) all aspects Question 10. Which of the following alone can ensure an effective ethics program in a company? (a) Publication of the Code (b) Employee Involvement (c) Implementation of Compliance Mechanisms (d) None of them Answers: 1.
(b) 2. (a) 3. (b) 4. (d) 5. (d) 6. (d) 7. (c) 8. (c) 9. (d) 10. However, Lynn Stout, a professor at Cornell University School of Law, wrote an opposing article in the New York Times in which she said: “There is a common belief that business leaders have a legal obligation to maximize corporate profits and shareholder value — even if that means circumventing ethical rules, harm the environment or employees. But this belief is completely false. Modern corporate law does not require for-profit corporations to pursue profits at the expense of everything else, and many do not.
`15 Its view is based, in part, on the abovementioned decision of the leisure lobby. II. Questions on the brief answer Question 1.