For customers, which are the areas of ethical and social responsibility concerns? A. Product Safety B. Fair Price C. Fair Wages D. TQM E. Proper disclosures and information Choose the correct answer from the options given below:
A, B and E only
When we talk about ethical and social responsibility from a customer's perspective, we are considering what a customer has a right to expect from a business in terms of fair treatment, safety, honesty, and reasonable practices. Businesses have responsibilities towards their customers that go beyond just providing a product or service. These responsibilities are tied to ethical behavior and social impact.
Let's evaluate each option provided in the question to determine which ones represent ethical and social responsibility concerns directly relevant to customers:
Based on the analysis:
Therefore, the areas of ethical and social responsibility concerns for customers among the given options are Product Safety (A), Fair Price (B), and Proper disclosures and information (E).
The areas of ethical and social responsibility that are direct concerns for customers are Product Safety, Fair Price, and Proper disclosures and information.
| Area | Customer Concern? | Reasoning |
|---|---|---|
| A. Product Safety | Yes | Customers expect products not to cause harm. |
| B. Fair Price | Yes | Customers expect reasonable and non-predatory pricing. |
| C. Fair Wages | No (primarily internal) | Concern of company towards employees, less direct for customer. |
| D. TQM | No (internal process) | Internal quality management process, not a direct ethical concern for customer. |
| E. Proper disclosures | Yes | Customers expect honest and complete information. |
Understanding a company's ethical duties helps clarify the customer's perspective on responsibility.
While the question focused on direct customer concerns, businesses also have broader social responsibilities that might indirectly concern customers who are socially conscious:
These broader areas reflect a company's corporate social responsibility (CSR), which can influence customer perception and loyalty, even if they are not direct ethical concerns regarding the product or transaction itself.
Corporations are controlled and directed by which one of the following?
Which one of the following is not a principle of corporate Governance ?
Match the items given in the List - I and List - II and suggest the correct code :
| List - I | List - II |
|---|---|
| (a) Ethics | (i) Right code of behaviour for a group or profession |
| (b) Morality | (ii) Prescribes right conduct for everyone |
| (c) Moral standard | (iii) Needs some inclination to follow morality |
| (d) Meta Moral Standard | (iv) Practical and pragmatic |
Code :
Assertion (A) : When a corporation acts ethically and socially responsible in its business decisions and strategic planning, then the corporation will be more sustainable.
Reason (R) : Socially responsible corporate behaviour is increasingly seen as essential to long-term survival of companies.
Read the following passage and answer the questions :
Jensen examines the dynamics of corporate takeovers and challenges prevailing misconceptions surrounding them. He argues that takeovers are not merely hostile disruptions but serve as a crucial mechanism of the market for corporate control. According to Jensen, inefficient management teams often fail to maximize shareholder value and takeovers act as disciplinary tool by transferring control to more competent managers. He emphasizes that while popular belief portrays takeovers as destructive to employees and communities, empirical evidence suggests that they frequently generate significant economic gains by reallocating resources to more productive uses. Jensen distinguishes between the folklore-emotional and political arguments against takeovers depicting as harmful to employees and society and the science, which demonstrates thier role in improving efficiency and shareholder wealth. He also addresses concerns about debt financing in leveraged buyouts, contending that high leverage can impose financial discipline on managers by reducing wasteful spending. Ultimately, Jensen frames takeovers as an essential corrective force within capitalism, countering managerial inefficiency and aligning corporate behavior with shareholder interests. His analysis laid the groundwork for modern corporate finance debates on governance, agency costs and the value-creating potential of mergers and acquisitions.