# Class 11 Business Studies Chapter 6 Notes | SwaVid NCERT Class 11 Business Studies notes: key ideas, definitions, common mistakes and 3 quick checks with worked answers. Written by SwaVid from the textbook. Canonical: https://www.swavid.com/cbse/class-11/business-studies/chapter/social-responsibilities-of-business-and-business-ethics Source: https://www.swavid.com/cbse/class-11/business-studies/chapter/social-responsibilities-of-business-and-business-ethics # Social Responsibilities of Business and Business Ethics ## Key definitions ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 11 Business Studies on SwaVid ### Concept of social responsibility ### Arguments for and against social responsibility ### Kinds of social responsibility ### Responsibility towards different interest groups ### Business and environmental protection ### Elements of business ethics ### Next chapter ### Related chapter ### Related chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 11 › Business Studies › Social Responsibilities of Business and Business Ethics Notes written by SwaVid from the NCERT textbook. Class 11 Business Studies, Chapter 6. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. This chapter examines the concept of social responsibility and the obligations businesses owe to different interest groups, along with the role of business ethics and environmental protection. It explains that long-term business survival depends on balancing profit goals with moral conduct and societal well-being. Source: NCERT Business Studies (Reprint 2026-27) , Chapter 6, Social Responsibilities of Business and Business Ethics Social responsibility refers to the obligation of business decision-makers to take actions that protect and improve the welfare of society alongside their own interests. It is broader than legal compliance because it includes voluntary actions guided by moral values. Arguments supporting social responsibility include long-term business self-interest, avoidance of government regulation, maintenance of society, and availability of resources with business. Major arguments against it include violation of the profit maximisation goal, burden on consumers, lack of social skills, and lack of broad public support. Social responsibility can be divided into four distinct categories: economic responsibility (producing goods and services profitably), legal responsibility (operating within the law of the land), ethical responsibility (expected moral behaviour not codified by law), and discretionary responsibility (purely voluntary charitable actions). Enterprises carry specific responsibilities towards shareholders (fair return on capital and safety of investment), workers (fair wages, good working conditions, and respect), consumers (regular supply of quality goods at reasonable prices), and the government and community (paying taxes honestly, protecting the environment, and respecting laws). Pollution is the injection of harmful substances into the environment, occurring as air, water, land, and noise pollution. Businesses must take steps to prevent pollution to control health hazards, reduce liability risks, save costs, improve public image, and ensure sustainable development. Business ethics refers to socially determined moral principles that govern business activities. Key elements of running an ethical business include top management commitment, publication of an enterprise code, establishment of compliance mechanisms, involvement of employees at all levels, and measuring results against ethical standards. Try each question first. Then tap it to see the answer. Meeting official effluent laws is an obligation under the law, which is legal responsibility. Installing an additional system beyond all statutory requirements on its own initiative is discretionary or voluntary responsibility. Legal responsibility and discretionary responsibility Safety labels protect the users who purchase and handle the goods, who are consumers. The enterprise owes consumers the supply of safe, quality goods accompanied by accurate information and warnings. Consumers; supplying safe goods and honest product information A formal written document covering enterprise principles, values, and workplace rules is called a code. The publication of a code of conduct is one of the foundational elements of business ethics. Publication of a code Formation of a Company . Business, Trade and Commerce . Forms of Business Organisation . Emerging Modes of Business . The 11 chapters of Class 11 Business Studies . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Formation of a Company. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 6 NCERT book - 80 marks, theory paper - 3 quick checks - Treating social responsibility and legal compliance as the same thing . Legal compliance is merely following statutory rules, while social responsibility goes beyond legal requirements to include voluntary moral obligations towards society. - Confusing ethical responsibility with discretionary responsibility . Ethical responsibility covers expected moral standards like honest dealing that are not codified into law, whereas discretionary responsibility covers purely voluntary charitable actions like building schools or donating to flood relief. - Assuming profit making is strictly opposed to social responsibility . Economic responsibility is the baseline of social responsibility; a firm must earn a profit to sustain itself and provide goods, services, and employment to society. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 11](https://www.swavid.com/cbse/class-11) - [Business Studies](https://www.swavid.com/cbse/class-11/business-studies/chapters) - [Start free →](https://www.swavid.com/signup) - [All 11 chapters](https://www.swavid.com/cbse/class-11/business-studies/chapters) - [NCERT Business Studies (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-11/business-studies/chapter/formation-of-a-company) - [Open notes](https://www.swavid.com/cbse/class-11/business-studies/chapter/business-trade-and-commerce) - [Open notes](https://www.swavid.com/cbse/class-11/business-studies/chapter/forms-of-business-organisation) - [Open notes](https://www.swavid.com/cbse/class-11/business-studies/chapter/emerging-modes-of-business) - [Class 11 Business Studies](https://www.swavid.com/cbse/class-11/business-studies/chapters) - [Start free →](https://www.swavid.com/signup)