Development of Professional, Managerial Class: Professional management education fosters a different attitude towards social responsibility compared to owner-managers.

Kinds of Social Responsibility

Economic Responsibility: Primary focus is profit creation through economic growth.
Legal Responsibility: Operate within the laws of the land, which are for societal good.
Ethical Responsibility: Behavior expected by society but not legally codified (e.g., fair wages, respecting culture). Involves voluntary action.
Discretionary Responsibility: Purely voluntary obligations (e.g., charitable donations, disaster relief). Companies have a moral duty to improve society.

Social Responsibility Towards Different Interest Groups

Shareholders/Owners:
- Provide fair return on capital investment.
- Ensure investment safety.
- Provide regular, accurate, full information on working and future growth.
Workers:
- Provide opportunities for meaningful work.
- Create good working conditions to foster cooperation.
- Respect democratic rights to form unions.
- Ensure fair wages and fair treatment.
Land Pollution:
- Dumping toxic waste damages land, making it unfit for agriculture.
- Restoring damaged land is a major problem.
Noise Pollution:
- Caused by factories/vehicles, a serious health hazard.
- Can cause hearing loss, heart malfunction, mental disorders.

Need for Pollution Control

Reduction of Health Hazards: Pollutants cause diseases (cancer, heart attacks, lung complications). Reduces liability risk for businesses.
Cost Savings: Effective pollution control saves operating costs, especially by reducing waste and disposal costs.
Improved Public Image: Society's environmental consciousness means pro-environment firms gain good reputation and are seen as socially responsible.
Other Social Benefits: Pollution control leads to clearer visibility, cleaner buildings, better quality of life, and purer natural products.

Role of Business in Environmental Protection

Businesses should lead in providing solutions to environmental problems.
Small changes can significantly reduce pollution:
- Production and redesign of equipment.
- Substituting poor quality materials with better ones.
Specific steps for businesses:
1. Definite commitment by top management for environmental protection.
2. Ensure thought is shared throughout enterprise by all divisions/employees.
3. Develop clear policies/programs for pollution control activities.
Comply with environmental laws (e.g., Environment Protection Act, 1986).
Participate in government environmental protection programs.
Periodically assess pollution control programs' costs/benefits to improve progress.
Arrange educational workshops/training to share technical information and involve stakeholders in pollution control.

Business Ethics

Set of principles (written or unwritten) governing professional or human activity (e.g., fair prices, fair treatment of workers, reasonable profits).

Elements of Business Ethics

Top Management Commitment: Strong, open commitment to