Question

State with reasons whether the following statement is True or False.
Business organizations do not have various types of social responsibilities.

• A. True
• B. False

Answer 1

The correct option is B False

A business organization has various types of social responsibilities which can be broadly divided into the following four categories:

1. Economic responsibility: It has the responsibility to produce goods and render the services and earn profits.

2. Legal responsibility: It has the responsibility to follow all the laws of the country.

3. Ethical responsibility: It is the responsibility of the business to work ethically such as respecting the religious sentiments and dignity of people.

4. Discretionary responsibility: It is a voluntary responsibility of the business to work for the betterment of the society.