Business Makers

Environmental pollution poses a serious threat to human health and quality of life. Pollution makes air harmful to breathe, water unsafe to drink and land unfit taj live on. Control over environmental pollution is necessary due to the following reasons:

• To Reduce Health Hazards: Environmental pollution is a major cause of cancer, lung and heat diseases. These diseases have become leading cause of death in modern society. Most of the health problems which women and infants face arise from the environment in which they work and live.

• To Reduce Safety hazards: Air pollution caused by oil refineries sand other industries leads to poor visibility. As a result automobiles on highways and aircrafts trying to land or take off from airports face hazards. Poor visibility has were the cause of serious accidents.

• To Reduce Economic Loss: Pollution spoils clothes, vegetation, livestock, and buildings. Pollution control is necessary to reduce the damage. It will reduce washing expenses and cost of repair maintenance of buildings.

• To Reduce Inconvenience: Pollution of rivers and lakes makes them unfit for swimming and fishing. Air pollution causes eye irritation and respiratory problems. Air pollutions obstruct normal conversation. Control over pollution can avoid such nuisance or discomfort.

• To Improve Quality of Life: Pollution control helps to improve the quality of air. It prevents blackening of buildings by pollution. For example, environmental experts have stressed the need to protect Taj Mahal from the pollution caused by Matura refinery Pollution control will also reduce foul odours.

The causes of various types of pollution are given below:

• Air Pollution: Smoke and other chemicals from industries and carbon monoxide form vehicles cause pollution of air. Emission of smoke, gases, fumes, dust and ash leads to or pollution. These harmful substances reduce the quality of air.
• Water Pollution: Business firms and people dump industrial effluents, waste and chemicals into jives, streams and lakes. As a result water gees polluted.
• Land Pollution: Dumping of toxic waste and garage gausses pollution of land. Excessive use of fertilizers, chemicals and pesticide also pollutes the soil. As a result land becomes infertile and no grass or plants can grow. It is necessary to restore the quality of land that has already been damaged. It is also essential to prevent future pollution of land by adopting new methods of disposal of solid waste.
• Noise Pollution: Traffic and industries create noise in cities.

• Pollution means the injection of harmful substance into the environment. Since independence, growing population and rapid growth of industries in India have crated serious environmental problems. For example, Delhi alone has more than 12.355 industries. The smoke and smell emanating from these industries are polluted their. Such pollution affects the health of people. It has been estimated that more than 5000 people die every year in India due to air pollution. Most of the industries dump their liquid waste into rivers, canals and underground water which leads to pollution of drinking water. Industries also cause noise pollution.

• The amount of environmental pollution depends upon the type of pollutant; the amount of pollutant disposed of into the environment and the distance of a place form the sources of pollution.

Business interacts with several interest groups of society. These interest groups are s follows:

INTEREST GROUPS

Owners and Employees Consumers Supplies Government Community
Investors and general
Public

The responsibilities of business towards these interest groups are summarized below:

• Responsibilities Towards Owners and Investors: (a) To provide a fair return on their investment (b)To furnish regular, accurate and complete information abut the working of the company (c) To maximize the shareholders’ wealth by means of increase in the value of shares (d) To allow the shareholders representation and participation in the management of business.

• Responsibilities Towards Employees: (a) To pay fair wages for the contribution of employees (b) To provide security of job and promotion opportunities (c) To offer welfare facilities like safe working conditions, housing, medical and leave, retirement benefits etc. (d) To treat employees as partners in the management and progress of business (e) To evocate work according to their knowledge an aptitude is as to ensure job satisfaction.

• Responsibilities towards Consumers: (a) To provide goods and services of the right quality and at reasonable prices(b) To avoid unfdair trade practices such as adulteration. Black-marketing, misleading advertising, etc. (c) To handle consumer grievance quickly and courteously. (d) to provide effective and prompt after sale service.

• Responsibilities towards Suppliers: Every business firm should develop and maintain healthy relations with suppliers and competitors. It must pay the right price and make regular payments to its suppliers. In regular dealings with competitors, a business enterprise must not adopt unfair trade practices such as price cutting to gain unfair advantage.

• Responsibilities towards the Government: (a) To comply with the laws passed by the government (b) To pay all taxes honesty and in time (c) To assist the government in the formulation and implementation of proper business policies (d) To support the government efforts in improving the quality of life of people.

• Responsibilities Towards the community and General Public: (a) To reduce pollution (b) To take adequate safety measures against production of hazardous or unsafe products (c) To contribute to social welfare by helping educational institutions, hospitals, weaker sections of society, etc. (d) To provide relief in times of natural calamities such as drought, flood, earthquake, etc. (e) To promote sports, art and culture (vi) To prevent discrimination on the basis of sex, caste, race, religion, etc. in providing employment.

Business is expected to work for the economic and social well being of the community. The responsibilities of business towards the society as a corporate citizen are as follows:

To make optimum utilization of national resources.
To generate maximum opportunities for gainful employment.
To protect the natural environment formal types of pollution.
To promote communal harmony and peas in society.
To uplift the weaker sections of society such as handicapped, orphans, widows, scheduled castled, etc.
To promote national interrogation and democratic institutions.
To preserved and promote social and cultural values.
To undertake research and development so as to improve quality and reduce costs.

A business owes the following responsibilities to the government:

To comply voluntarily with the laws passed by the government.
To pay taxes and duties honestly and in time.
To make constructive suggestions regarding formulation of policies which have a bearing on business?
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To support the efforts of the government for improving the quality of life of people and in solving the pressing national problems in the country.
To plan and establish new endures joint rural and backward areas in the interest of balanced regional development of the country.
To continue towards rescue and relief work in times of national calamity or disaster such s droughts, floods, earthquake, etc.

A business owes its existence to its consumers. The responsibilities obtuseness towards the consumers is given below:

To produce the goods and services needed and desired by consumers.
To provide goods and services of goods quality at reasonable prices.
To provide current information about goods and services.
To avoid malpractices such as adulteration, black marketing, misleading advertising, etc.
To redress the grievances of consumers effectively and promptly.
To comply with the laws aimed at protection of consumed.
To provide prompt and effective aftedr-sale service.

Some people criticize the concept of social responsibility. They put forward the following arguments to oppose the assumption of social responsibilities by businessmen.

Dilution of Business Goals: If a business firm involves it in social activities, its economic goals might get diluted. Its positing in the market place might be weakened. As a result it may accomplish poorly in both its economic social goals. Society will lose when productivity of business declines. The economic role of business in society would also become confused.

Lack of Social Skill: Generally businessmen lack the perception a skill required for effective handling of social problems. Their outlook is primarily economic and they do not feel comfortable with social mattes. Their mental make up is suited for handling business matters only.

Rise in Prices: Social involvement of business requires financial expenditure. Unless the government or social institution bear the costs, business is likely to pass his cost on to consumers by increasing the prices of goods and services.

Lack of Accountability: A business enterprise is responsible mainly to its owners. Involvement of business in social matters will give businessmen more owners. As public has little control over them it swills be difficult to check miscue of this power. If different sections of society are represented in the management of business to ensure accountability, decision-making process would become political and freedom of enterprise would be undermined.

Reeducation in Competitiveness: If business firms are asked to spend considerable money on social activities, their competitive position in international markets may go down.

Lack of Measurement: There are no clear-cut criteria to judge the social performance of a business enterprise. Economic values are the only precise criteria to measure the performance of business. Moreover, business corporations are not more agents.
The arguments given above suffer from tow limitations. First, they require business firms to ignore social demands on them. Business enterprises cannot afford to do so. Business concerns are no longer mere economic institutions. They are also social institutions. Businessmen are trustees of various social groups. Secondly, these arguments overstress the power and influence, which businesses may exercise by assuming social responsibilities.

Business should assume social responsibility due to the following reasons:

It is in the long term interest of business

It will help to improve the public image of business

It will avoid government regulation of business activities

It is important to full fill social obligations unmoral

Consumers are now more conscious of their rights and demand such obligations from business enterprises.
Social obligations refer to the obligations or responsibilities of business to act in manner which will serve the best interests often society. Social obligations are different form legal obligations. Legal obligations are compulsory and can be fulfilled merely by complying with the law. Social obligations, on the other hand, relate to the voluntary efforts on the part of businessmen to sue social problems. The concept of social obligation is based on the assumption that what is good for society is also good for business.
Business should assume social obligations due jot the following reasons:
Long Term Interest of Business: Business gees its resources form the society. It is the duty of business to satisfy the needs of society. If business spends a part of is profits for improving social conditions, it will rat an environment more favorable to the long term prosperity of business. Education, pollution control, enlistment of the poor and such other measures can be adopted or the improvement of society In the long run, a successful business can be built on the foundations of a happy community. Thus. Assumption of social obligations is in the long-term interest of business itself.
Public Image: A business firm can improve its public image by fulfilling its social obligations. Such a business will enjoy the support of is customs and other interest groups. They will patronize it and as a result, it will earn more profits.
Avoidance of Government Control; If businessmen voluntarily discharge their social obligations, need of government controls avoided. Government control is costly to business as it reduces the flexibility for decision king. For example, if a factory is causing pollution of air or water, the owner should take steps to prevent I. if this in not done, government may ask the firm to shift to another area or to close down. By assuming social obligations, businessmen cnmaintain freedom of enterprise.
MoralJustificatioin: Everybusienss enterprise makes use of physical, financial and human resources of the society. It also depends intersociety for sale of goods and services. Moreover, business firms make use of roads, power, water supply and other common facilities provided by the society. Therefore, it is the moral responsibility of business to use all resource for the well-being of society. Businessmen also have the knowledge, experience and he financé to cooperate with the government and help the society in solving its problems.
Social Awareness: In recent years, consumes have become increasingly aware of their rights. Consumed groups and consumed courts are compelling business mentor dress the grievances of consumes. Works have gone united in the form of trade unions to protect their interests. These dovecotes make it necessary for businessmen to serve the interests of consumes, employees and other interest groups.
Social Power: Business enjoys considerable social pawed because its decisions affect all sections of society. Social responsibility is necessary to balance power and responsibility. If business does not assume obligations to society, the swear of society will be affected. Other social groups may take away the social power of business.,
Resources Skills: Business has considerable resources ad skills some of which fan is useful involving society’s problems. Busies is also known for its innovative skills sands efficiency in the use of physical so financial resources. These deform business should help the society.
Creator of Social Problem: Business causes pollution and makes work places unsafe therefore it is the responsibility of business to help society in dealing with the negative impact of business activities.

Â

A privet company has the following advantages over a public company:

Easy Start: A private company can be formed more easily as it requires only two members. It can start its business immediately after incorporation. A public company has to wait till it obtains the Certificate of Commencement of Business.

Quick Decisions: A private company can take decisions more promptly as only two directors are required for consultation.

Bitter Secrecy: The accounts and reports of a private company are not open for inspection to public. It is comparatively easy to maintain secrecy of affairs.

Flexibility of Operations: A privet company is exempt from several legal formalities. There is, therefore, greater flexibility in day-to-day operations.

Centralized Control: Generally, the management of a private company is vested in family. There is greater incentive and responsibility on the part of the board of directors.

A private company, however, can raise less capital than a public company. Shares of a private company dare not freely transferable. It does not enjoy the confidence of general to run a business without associating a large number of members and at the same time want to get the benefit of limited liability.