Class 11 Business Studies Chapter 6 NCERT Solutions 2026-27

Quick solution. Social responsibility means business decisions and actions that match society's values. Legal responsibility means obeying law. Social responsibility is broader because it includes voluntary duties beyond law.

Concept used. Social responsibility of business is its obligation to take decisions and perform actions that are desirable in terms of society's objectives and values. Legal responsibility is the minimum duty to follow the law.

1. Meaning: Social responsibility means that a business should not work only for profit. It should also consider how its actions affect people and society.
2. A responsible business supplies good goods, treats workers fairly, pays taxes honestly and handles customer complaints sincerely.
3. Legal responsibility: Legal responsibility means obeying the laws made by the government.
4. A firm may obey all laws and still ignore some social expectations, such as helping the community or reducing harm beyond legal limits.
5. Difference in scope: Social responsibility is broader than legal responsibility because it includes voluntary action.
6. Difference in motive: Legal responsibility is compulsory. Social responsibility comes from ethical concern and the desire to serve society.

Final answer: Social responsibility is the wider duty of business to act according to society's values. Legal responsibility is the compulsory duty to obey law. Social responsibility includes law, but also covers voluntary actions for society's welfare.

Quick solution. Environment means the total surroundings of human beings, both natural and human-made. Environmental pollution means adding harmful substances into the environment, which lowers its quality.

Concept used. Environment covers land, water, air, natural resources, cultural heritage, social institutions and people. Environmental pollution is the injection of harmful substances into the environment.

1. Environment: Environment means the totality of human surroundings.
2. It includes natural resources such as land, water, air, flora and fauna.
3. It also includes human-made resources such as cultural heritage, social institutions and people.
4. Environmental pollution: Pollution means adding harmful substances into the environment.
5. These harmful substances may enter air, water, land or the sound environment.
6. Pollution reduces environmental quality and creates danger for human life and other species.

Final answer: Environment is the totality of human surroundings, including natural and human-made resources. Environmental pollution is the injection of harmful substances into air, water, land or the surroundings, making them unsafe for life.

Quick solution. Business ethics means applying moral principles to business conduct. Its main elements are top management commitment, a written code, compliance systems, employee involvement and measuring results.

Concept used. Ethics deals with what is right or wrong in human behaviour. Business ethics applies these moral principles to business objectives, practices and decisions.

1. Meaning: Business ethics is the set of moral principles that guide business activities.
2. It checks whether business objectives, practices and techniques serve the good of society.
3. Top management commitment: Senior managers must openly support ethical conduct and lead by example.
4. Publication of a code: The enterprise should write a clear code of conduct for employees.
5. Compliance mechanism: The firm should create systems for training, reporting and checking ethical behaviour.
6. Employee involvement: Employees at all levels should take part in ethics programmes.
7. Measuring results: The firm should audit and review whether ethical standards are being followed.

Final answer: Business ethics means moral principles applied to business conduct. The basic elements are top management commitment, publication of a code, compliance mechanisms, involving employees at all levels and measuring results.

Quick solution. Air pollution is contamination of air by smoke, gases and dust. Water pollution is contamination of water by chemicals, waste and sewage. Land pollution is damage to land by dumping waste and toxic substances.

Concept used. Pollution is the addition of harmful substances to the environment. NCERT links business and industry with air, water, land and noise pollution.

1. Air pollution: Air pollution occurs when harmful smoke, gases, dust or chemical fumes enter the air.
2. Factories, vehicles, thermal plants and burning of fuels are common sources. It can cause breathing problems, poor visibility and climate harm.
3. Water pollution: Water pollution occurs when industrial waste, chemicals, sewage or oil enter water bodies.
4. It makes water unsafe for drinking, farming, fish and other aquatic life.
5. Land pollution: Land pollution occurs when solid waste, toxic chemicals, plastics or industrial refuse are dumped on land.
6. It reduces soil quality, harms crops and can poison underground water.

Final answer: Air pollution harms the air through smoke, gases and dust. Water pollution harms water through chemicals, sewage and industrial waste. Land pollution harms soil through waste dumping, toxic substances and careless industrial disposal.

Quick solution. The major areas are responsibility towards shareholders or owners, workers, consumers, and government and community. Each area asks business to protect a different interest group.

Concept used. A business enterprise affects many interest groups. Social responsibility becomes practical when the firm identifies what it owes to each group.

1. Shareholders or owners: Business should give a fair return on investment and keep their capital safe.
2. Workers: Business should provide fair wages, good working conditions, meaningful work and chances for growth.
3. Consumers: Business should supply the right quality and quantity of goods and services at reasonable prices.
4. Government and community: Business should pay taxes honestly, follow rules, protect the environment and support social welfare.
5. These areas show that business responsibility is not limited to one group.

Final answer: The major areas of social responsibility are duties towards shareholders or owners, workers, consumers, and government and community.

Quick solution. Under the Companies Act 2013, CSR is the responsibility of eligible companies to take up socially useful activities. The law encourages spending at least 2 percent of average net profit from the previous three years on CSR activities.

Concept used. Corporate Social Responsibility links business operations with social progress, economic progress and environmental protection. In India, Section 135 of the Companies Act 2013 governs CSR.

1. In India, CSR is governed by Section 135 of the Companies Act 2013.
2. The provisions apply to companies with annual turnover of Rs. 1,000 crore or more.
3. They also apply to companies with net worth of Rs. 500 crore or more, or net profit of Rs. 5 crore or more.
4. Eligible companies need a CSR committee of board members, including at least one independent director.
5. The Act encourages companies to spend at least 2% of their average net profit of the previous three years on CSR activities.
6. CSR activities should fall under Schedule VII and only activities undertaken in India are counted.

Final answer: Corporate Social Responsibility under the Companies Act 2013 means the duty of eligible companies to spend effort and resources on approved social, economic and environmental activities through a CSR committee and Schedule VII projects.

Quick solution. Arguments for social responsibility include existence, long-term interest, avoiding regulation, social stability, resources, opportunity, better business climate and responsibility for problems. Arguments against it are profit focus, consumer burden, lack of social skills and weak public support.

Concept used. The debate on social responsibility asks whether business should serve only owners or also serve other groups affected by business actions.

1. Arguments for social responsibility:
2. Justification for existence and growth: Business exists to serve human needs. Profit should be seen as the outcome of service.
3. Long-term interest of the firm: A socially responsible firm gains public image, cooperation and trust.
4. Avoidance of government regulation: Voluntary responsible action can reduce the need for strict new laws.
5. Maintenance of society: If people feel cheated by business, social disorder may harm business itself.
6. Availability of resources: Business has money, managers and organisation skills that can help solve social problems.
7. Converting problems into opportunities: Business can turn social challenges into useful and profitable work.
8. Better environment for business: A healthier society gives firms a better setting for growth.
9. Responsibility for social problems: Some problems, such as pollution and unsafe workplaces, are linked with business activity.
10. Arguments against social responsibility:
11. Violation of profit maximisation objective: Critics say business exists mainly to earn profit for owners.
12. Burden on consumers: Social spending may be shifted to consumers through higher prices.
13. Lack of social skills: Business managers may not have the training to solve social problems.
14. Lack of broad public support: Some people may not want business to interfere in social programmes.

Final answer: Arguments for social responsibility stress service, long-term interest, public image, resources, social stability and business-caused problems. Arguments against it stress profit maximisation, higher consumer prices, lack of social skills and lack of public support.

Quick solution. The main forces are threat of public regulation, pressure of labour movement, consumer consciousness, new social standards, business education, link between social and business interest, and professional managers.

Concept used. NCERT explains that business concern for society has grown because external pressures and internal management thinking have changed.

1. Threat of public regulation: If business acts irresponsibly, government may make strict laws to protect public interest.
2. Pressure of labour movement: Educated and organised workers demand fair wages, safety and better working conditions.
3. Impact of consumer consciousness: Consumers are now more aware of quality, price, safety and their rights.
4. Development of social standards: Society now accepts business activity only when it also serves social needs.
5. Development of business education: Business education teaches managers that firms have social purposes along with economic goals.
6. Relationship between social and business interest: Firms have realised that social welfare and long-term business interest can support each other.
7. Professional managerial class: Professional managers often take a wider view than old owner-managers.

Final answer: The increasing concern for social responsibility is due to public regulation, labour pressure, consumer awareness, new social standards, business education, the link between social and business interest, and the growth of professional managers.

Quick solution. Business is a social institution because it uses society's resources, serves human needs, affects many groups and survives through public cooperation. Profit is important, but it cannot be the only aim.

Concept used. A social institution is an organised activity that exists inside society and affects social life. Business fits this meaning because it depends on and influences society.

1. Business exists to provide goods and services that satisfy human needs.
2. It uses society's land, labour, capital, knowledge, law and public infrastructure.
3. Its decisions affect owners, workers, consumers, suppliers, government and the community.
4. If business sells adulterated goods, pollutes the environment or exploits workers, society suffers.
5. If business supplies good goods, pays taxes, treats workers fairly and protects the environment, society benefits.
6. A firm also needs public trust, worker cooperation, consumer support and government permission to survive.
7. Profit is necessary for growth, but NCERT treats profit as an outcome of useful service.
8. So business must justify its existence through both economic performance and social responsibility.

Final answer: Business is a social institution because it operates within society, uses social resources and affects many interest groups. Profit is necessary, but business must also serve social needs and act responsibly.

Quick solution. Enterprises need pollution control to reduce health hazards, lower liability risk, save costs, improve public image and create wider social benefits.

Concept used. Pollution control means checking, reducing and treating harmful waste before it damages air, water, land or living beings.

1. Reduction of health hazards: Pollution can cause cancer, heart attacks, lung problems and other diseases. Control measures protect workers and the public.
2. Reduced risk of liability: A polluting firm may face legal claims, fines or compensation demands.
3. Cost savings: Pollution control may reduce waste, recycle materials and improve resource use.
4. Improved public image: A clean and responsible firm gains trust from consumers, workers, investors and government.
5. Other social benefits: Pollution control improves quality of life, protects natural resources and supports future generations.
6. These reasons show that pollution control is useful for both society and the enterprise.

Final answer: Enterprises need pollution control because it reduces health hazards, liability risk and waste cost. It also improves public image and gives social benefits by protecting environment and quality of life.

Quick solution. An enterprise can protect the environment through top management commitment, clear policies, law compliance, participation in government programmes, regular assessment, training for employees and outside partners, and a shared pollution-prevention work culture.

Concept used. Environmental protection by business means planned action to prevent pollution, comply with law and educate employees about clean practices.

1. Commitment from top management: Senior managers should create, maintain and develop a work culture for environmental protection.
2. Clear policies and programmes: The firm should frame pollution-prevention policies and explain them to employees.
3. Legal compliance: The enterprise should follow government laws and regulations for pollution control.
4. Participation in government programmes: The firm should support official environmental programmes and community initiatives.
5. Assessment of programmes: The enterprise should regularly check the working of its pollution-control measures.
6. Education and training: Employees should be trained to use clean processes, handle waste safely and report risks.
7. External stakeholder education: The firm should arrange workshops and training material for suppliers, dealers and customers so the environmental commitment is shared outside the factory.
8. Enterprise-wide work culture: Every division and employee should treat pollution prevention as part of normal business work.

Final answer: An enterprise can protect the environment by strong management commitment, clear environmental policies, compliance with pollution laws, participation in government programmes, regular assessment, training for employees and outside partners, and an enterprise-wide pollution-prevention culture.

Quick solution. The elements are top management commitment, publication of a code, compliance mechanisms, employee involvement and measuring results. Together they turn ethical values into daily business practice.

Concept used. Business ethics is not only a statement of values. It needs leadership, written rules, systems, employee participation and review.

1. Top management commitment: The CEO and senior managers should be openly committed to ethical conduct. Their behaviour sets the tone for the whole organisation.
2. Publication of a code: A code is a written document that states expected conduct. It may cover honesty, law compliance, product quality, safety, conflicts of interest, employment and fair selling.
3. Establishment of compliance mechanisms: The firm should use recruitment standards, training, audits and reporting systems to make sure conduct matches the code.
4. Involving employees at all levels: Ethics works only when employees who implement decisions take part in the programme.
5. Measuring results: The enterprise should audit performance and discuss results so that weak areas can be improved.
6. These elements create an ethical culture rather than a paper-only promise.

Final answer: The elements of business ethics are top management commitment, publication of a code, compliance mechanisms, involvement of employees at all levels and measurement of results.

Quick solution. The Act applies CSR provisions to companies crossing set turnover, net worth or profit limits. It asks for a CSR committee, encourages 2 percent average-profit spending, lists Schedule VII activities and counts only Indian CSR activities.

Concept used. Section 135 of the Companies Act 2013 gives CSR a formal route for eligible companies through committee-based planning and approved activity areas.

1. Applicability: CSR provisions apply to companies with annual turnover of Rs. 1,000 crore or more.
2. They also apply when net worth is Rs. 500 crore or more, or net profit is Rs. 5 crore or more.
3. CSR committee: The company should set up a CSR committee of board members.
4. The committee should include at least one independent director.
5. Spending norm: The Act encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities.
6. Schedule VII: The indicative activities are specified under Schedule VII of the Act.
7. Indian activities: Only CSR activities undertaken in India are taken into consideration.
8. Employee-only activities: Activities meant only for employees and their families do not qualify as CSR.

Final answer: The Companies Act 2013 CSR guidelines cover eligibility thresholds, a CSR committee with board members, a 2 percent average-profit spending norm, Schedule VII activities, Indian activity coverage and exclusion of employee-only benefits.

Quick solution. A classroom code of ethics should list fair conduct for students, teachers and the principal. It should cover honesty, respect, safety, fairness, responsibility and reporting of misconduct.

Concept used. A code of ethics is a written statement of expected behaviour. In a classroom, it guides all members towards trust, fairness and respect.

1. Title: Code of Ethics for Our Classroom.
2. For students: Be honest in homework, tests and group work. Respect classmates, teachers and school property.
3. Students should not bully, cheat, copy assignments, damage property or hide unsafe behaviour.
4. For teachers: Teach fairly, listen to students, check work honestly and avoid favouritism.
5. Teachers should protect student dignity and give feedback that helps learning.
6. For the principal: Maintain a safe learning environment, treat complaints fairly and support ethical conduct.
7. The principal should make sure rules are known to all and applied without bias.
8. Reporting: Students and staff should report cheating, bullying, discrimination or safety risks through a trusted channel.
9. Review: The code should be discussed once every term and updated when needed.

Final answer: A suitable classroom code of ethics should include rules for honesty, respect, fairness, safety, responsibility, unbiased teaching, fair discipline and a clear reporting system.

Quick solution. Students should choose six companies from reliable business sources, three responsible and three irresponsible. The report should explain evidence, affected stakeholders and reasons for each judgement.

Concept used. This project applies social responsibility to real companies. A judgement should be based on evidence, not only on brand popularity.

1. Select sources: Use newspapers, magazines, annual reports, company CSR pages and business references.
2. Make two lists: Put three companies under socially responsible and three under socially irresponsible.
3. Responsible examples: Look for evidence such as fair labour practices, pollution control, community development, consumer safety or transparent reporting.
4. Irresponsible examples: Look for evidence such as misleading advertisement, pollution, labour exploitation, tax violation, unsafe products or bribery reports.
5. Describe each company: Write the action, the stakeholders affected and why the action is responsible or irresponsible.
6. Add citations: Mention the newspaper, magazine, website or report used for each entry.
7. Conclude: Explain which pattern you noticed across the six companies.

Final answer: The project should identify six companies with source-based evidence. It should describe three socially responsible and three socially irresponsible cases by action, stakeholder impact and reason.

Quick solution. The CSR report should name the company, list CSR activities, connect them with Schedule VII themes, show beneficiaries, mention spending or scale where available and give a short conclusion.

Concept used. A CSR report studies how a company contributes to social progress, economic progress or environmental protection beyond its normal business operations.

1. Choose the company: Select one company with a public CSR report or annual report.
2. Company profile: Write its sector, main products or services and location of major operations.
3. CSR policy: Summarise the company's stated CSR focus areas.
4. Activities: List projects such as education, skill development, health, environment, women support, sanitation or start-up support.
5. Beneficiaries: Mention who benefits, such as students, local communities, women, farmers or marginalised groups.
6. Spending or scale: Add CSR spending, number of centres, villages, schools or beneficiaries if the source gives it.
7. Link with law: Connect activities with Companies Act 2013 and Schedule VII themes where possible.
8. Conclusion: State whether the CSR work is useful, continuous and aligned with society's needs.

Final answer: A good CSR report includes company profile, CSR policy, activity areas, beneficiaries, spending or scale, Schedule VII link, source details and a short evaluation.