Q-2

Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business
conduct and is relevant to the conduct of individuals and entire organizations.[1] These ethics originate from individuals,
organizational statements or from the legal system.
Laws are the written statutes, codes, and opinions of government organizations by which citizens, businesses, and
persons present within a jurisdiction are expected to govern themselves or face legal sanction. Sanctions
for violating the law can include (a) civil penalties, such as fines, pecuniary damages, and loss of licenses, property,
rights, or privileges; (b) criminal penalties, such as fines, probation, imprisonment, or a combination thereof; or (c) both
civil and criminal penalties.
Very often it is held that business is not bound by any ethics other than abiding by the law. Milton Friedman is the
pioneer of the view. He held that corporations have the obligation to make a profit within the framework of the legal
system, nothing more.Friedman made it explicit that the duty of the business leaders is, "to make as much money as
possible while conforming to the basic rules of the society, both those embodied in the law and those embodied in
ethical custom".[181] Ethics for Friedman is nothing more than abiding by 'customs' and 'laws'. The reduction of ethics to
abidance to laws and customs however have drawn serious criticisms.
Counter to Friedman's logic it is observed. that legal procedures are technocratic, bureaucratic, rigid and obligatory
where as ethical act is conscientious, voluntary choice beyond normativity.[182] Law is retroactive. Crime precedes law.
Law against a crime, to be passed, the crime must have happened. Laws are blind to the crimes undefined in it. Further,
as per law, "conduct is not criminal unless forbidden by law which gives advance warning that such conduct is criminal.
Q-4
The economic liberalisation in India refers to the economic liberalisation, initiated in 1991, of the country's economic
policies, with the goal of making the economy more market and service-oriented and expanding the role of private and
foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes,
and greater foreign investment. Liberalisation has been credited by its proponents for the high economic growth
recorded by the country in the 1990s and 2000s. Its opponents have blamed it for increased poverty, inequality and
economic degradation. The overall direction of liberalisation has since remained the same, irrespective of the ruling
party, although no party has yet solved a variety of politically difficult issues, such as liberalising labour laws and
reducing agricultural subsidies.[1] There exists a lively debate in India as to what made the economic reforms sustainable
The impact of these reforms may be gauged from the fact that total foreign investment (including foreign direct
investment, portfolio investment, and investment raised on international capital markets) in India grew from a
minuscule US$132 million in 199192 to $5.3 billion in 199596.[39]
Annual growth in GDP per capita has accelerated from just 1 per cent in the three decades after Independence to 7
per cent currently, a rate of growth that will double average income in a decade.... In service sectors where government
regulation has been eased significantly or is less burdensomesuch as communications, insurance, asset management
and information technologyoutput has grown rapidly, with exports of information technology enabled
services particularly strong. In those infrastructure sectors which have been opened to competition, such
as telecoms and civil aviation, the private sector has proven to be extremely effective and growth has been phenomenal.
Q-5
Important elements of economic development are :
1. Economic systems :Economic system determines the scope of private sec tore ownership of the factors of production
and market forces.The model of economic system are:
A) -Free market economic :This system is based on private ownership of the factors of production. Profit serves as the
driver of economic engine.The competitive market mechanism guides business decisions.There is freedom of
choice.Individual initiative is encouraged.
B) -Centrally planned economy :This system is based on police ownership of the factors of production.The economy is
centrally planned.Controlled and regulated by the government.There is no consumer sovereignty.Police enterprises play
a dominant role.
C) -Mixed economy :This system is a mix of free market and centrally planned economics.Both public and private sectors
coexist.The public sector ha ownership and control of basic industries including utilities.The sector owns agriculture and
other industries but is regulated by the state.
2. Economic policies :Policies are guidelines for decision making and action.Economic policies of the government
significantly influence and guide organizations. Key economic policies influencing organization are :
A) Monetary policy-It is concerned with money supply,inflation rates,interest rates and credit availability.It influences
the level of spending through interest rates.Cheap money reduces cost,dear money increase cost.Interest rates cost of
capital.Foreign exchange rates affect imports and exports.
B)Fiscal policy :It is concerned with the use of taxation and government expenditure to regulate economic activity.Tax
on income,expenditure and capital influence business decisions.
C)Industrial policy :It is concerned with industrial licencing location,incentives,facilities,foreign investment,technology
transfer and nationalization.
3.Economic conditions :They indicate the health of the economy in which the organization operate.The factors affecting
economic conditions are : State of economic development :An economy can be least developed developing and
developed.Organizational activities are influence by the stage of economic development. Income :The level of
employment affect expenditure,saving and investment.They together influence the economic conditions of organization.
Employment:The level of employment affects organization.It determines availability and of labour. Business cycle :The
stages of business cycle can prosperity,rescission and recovery .They affects the health organization. Influence :It is rise
in price level.influences costs,price and profit of organization.
4. Regional economic groups :They promote cooperation and free trade among members by removing tariff and other
restrictions.They provide opportunities to member countries and threats to non-member counties.Example are:
SA ARC :South Asian Association for Regional Cooperation.
ASIAN :Association of South East Asian Nations.
EU :European Union.
Q-7
Benefits of Social Audit
Social audit offers certain distinct benefits. The principal benefits derived from social audit are as follows:
1. It provides a recognized method for bringing the social point of view to the attention of management.
2. Person outside the company appraises the individual corporations. Hence, they can give an unbiased and
disinterested view about the activities of the company employees.
3. The social audit report is made to the company and not to the public. Hence the social auditor can give a frank opinion
about the social welfare schemes of the company.
Besides there are several other benefits which are worth mentioning.
1. It supplies data for comparison of policies and standards.
2. It encourages greater concern for social performance throughout the organization.
3. It provides data for comparing effectiveness of different types of social welfare programmes.
4. It helps the organization to build up the image and reputation of the organization in the minds of the public.
5. The shareholders shall realize the importance of socially beneficial schemes and extend their full cooperation to the
companys programmes of social welfare and development
Q-9
Disadvantages of Capitalism
Biggest drawback of this system is that private companies become so big that they become almost monopoly in their
field which leads to exploitation by them in terms of charging the price for product or service which they produce.
In this system poor people are hit the hardest because the gap between the rich and poor keep rising under this system
as there is limited government control.
It is due to the above disadvantages that many countries follow a mix of capitalist and socialist economic system where
the important resources are controlled by government and rest are left to the market.
Q-10
Common problems in work with deviations include faulty reporting, deviations that "fall between stools" due to unclear
responsibility and time-consuming data collection and compilation. To assess a company's quality non-conformity costs
and to remedy these in a structured way is not something many succeed in doing. An effective IT solution for
systematically collecting, remedying and following up deviations gives the opportunity for significant savings!
The key to success within deviation management often lies not just in being good at "fire fighting" but also in
introducing effective long-term solutions. This is where IT support can help you to prioritise and control the process
towards the right type of remedies
Q-11
The sum total of all surroundings of a living organism, including natural forces and other living things, which provide
conditions for development and growth as well as of danger and damage. See also environmental factors
Q-15
The basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as
the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health
and safety and, increasingly, also for the natural environment. See also morality.
Q-13
Companies benefit society by: Supplying goods and services that customer cannot, or do not want to, produce
themselves Creating jobs for customers, suppliers, distributors and coworkers. These people make money to support
themselves and their families, pay taxes and use their wages to buy goods and services Continually developing new
goods, services and processes Investing in new technologies and in the skills of employees Building up and spreading
international standards, e.g. for environmental practices Spreading good practice in different areas, such as the
environment and workplace safety