Various business activities such as production, transportation and consumption of goods often result in overexploitation of natural resources. Thus, it is the responsibility of every business enterprise to control discharge of pollutants into the environment. The following steps can be taken by the business enterprises to control pollution.

(a) Control by top managers: The top management of every organisation should be committed to creating, developing and maintaining a work culture conducive to environmental protection and pollution prevention.

(b) Control by employees: Employees at all the levels of an organisation should be committed to keeping the environment clean and protected.

(c) Better technology: Enterprises should employ good and superior technologies of production and use scientific techniques for waste disposal. This will ensure environment protection and pollution control.

(d) Follow rules: Enterprises must conform to the rules and regulations enacted by the government for the prevention of environmental pollution.

(e) Increased awareness: By conducting workshops and training programmes, business enterprises must make an effort to spread awareness among its employees of the need to conserve the environment.

(f) Assessment programmes: An efficient mechanism for the periodic assessment of pollution control programmes may also be adopted, in order to weigh their costs and benefits.

Question - 12 : -
Explain the various elements of business ethics?.

Answer - 12 : -

Business ethics can be defined as the code of conduct that a business must follow, such that it takes up only those activities that are desirable from the viewpoint of society. The purpose of business ethics is to guide managers and other employees in an organisation in performing their jobs in a manner that is socially acceptable.

Business ethics should be followed in the day-to-day working of a business enterprise. The following are some of the elements of business ethics.

(a) Commitment by top management: Top-level officers, such as the CEO's and other higher level managers, must sincerely follow the ethical code of conduct. They should also guide other employees in their organisation in adopting the code.

(b) Publication of a ‘code’: An enterprise must clearly define the ethical code of conduct to be followed in the organisation. The code should include quality standards for work, laws governing production and employee health and safety standards.

(c) Establishment of compliance mechanism: In addition to setting performance standards, an enterprise must also devise a mechanism through which it can measure the actions of individual employees. This should be done in order to confirm whether the ethical standards are being met.

(d) Involvement of employees at all levels: The successful implementation of ethical standards depends to a large extent on the involvement of employees at different levels. This is because it is the employees who actually implement the ethical codes.

(e) Measurement of results: Although it is difficult to measure the end results of implementation of ethical standards, the top management should take steps to monitor compliance. Also, it must take serious action against any unethical behaviour in the organisation.

Question - 13 : -
Discuss the guidelines enumerated by the Companies Act 2013 for Corporate Social Responsibility.

Answer - 13 : -

Corporate social responsibility in general refers to the responsibilities and duties of the businesses towards the society. The Corporate Social Responsibility in India as governed by the Companies Act, 2013 (under Clause 135) applies to those companies which have an annual turnover of Rs. 1,000 crore and more, or those having a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and more. The meaning of CSR as per Companies Act, 2013 can be understood with the help of the following guidelines:

1. The companies are required to setup a committee for Corporate Social Responsibility consisting of 3 or more board members of the company, including at least one independent director.

2. The companies should spend at least 2% of their average net profits made during 3 immediately preceding financial years, in regards with the Corporate Social Responsibility Policy.

3. In India, only those CSR activities should be taken by the company which are a part of Corporate Social Responsibility Policy as formed on the recommendations of Corporate Social Responsibility Committee.

4. The activities which a company may undertake under CSR, should be according to those as specified under Schedule VII of the Act.

5. The activities which are exclusively meant for employees of the organisation or their family members will not be considered as a part of CSR.

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Chapter 6 Social Responsibility of Business and Business Ethics Solutions

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