Where Do Companies Do Their Business?
In the Markets or in the Society? It is an undisputed fact that a company’s survival does not depend upon its consumers alone, but a diverse set of stakeholders like the government, religious leaders, social activists, NGOs, media, etc. Hence, earning the satisfaction of these segments is also as imperative as they add to the power of the brand by word of mouth. The social concern adds to the strength of the brand. Corporates that embraced the deepest social values, have been successful in building powerful brand, and, eventually, robust customer relationship. The area of corporate social justice fall under two broad categories. The issues such as the nutrition of children, child care, old-age homes, amelioration of hunger, offering aid to those affected by natural calamities, etc. needing instant attention with humanitarian perspective, comes under the first category. The issues that contribute to making society a pleasant place to live in the long run, may be grouped under the second category. The issues which come under this category are health awareness and aid, education, environmental protection, women’s employment and empowerment, preventing unjust discriminations (on the basis of caste, community, religion, ethnicity, race, and sex), eradication of poverty through employment, preservation of culture, values, and ethics, contribution to research, etc. Procter and Gamble’s (P&G) philosophy is that it should lead the industry in implementing a global environmental programme. P&G is one of the first companies in the world to actively study the influence of consumer products on the environment and introduce concentrated products, recycled plastic bottles, and refill packages to the industry. P&G contributes to sustainable development and addresses environmental and social issues connected with its products and services.
The two broad categories of corporate social justice issues described in the passage differ primarily in terms of
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The time frame and sustainability of their impact
Option (1) The nature of their beneficiaries — Incorrect. Both categories serve people in society, including the needy. The passage does not separate them by who benefits.
Option (2) The time frame and sustainability of their impact — Correct. The first category covers issues needing instant attention, such as hunger and disaster relief. The second covers issues that make society a pleasant place to live in the long run, such as education, health awareness, women’s empowerment and removing poverty through employment. So the two differ in how soon help is needed and how long its effect lasts.
Option (3) Their potential for generating revenue — Incorrect. The passage talks of social concern adding to the strength of the brand, but it does not classify the issues by the revenue they bring.
Option (4) Their dependence on government policy — Incorrect. The government is named only as one of the stakeholders. The two categories have nothing to do with government policy.
Note: The passage is the NCERT case study ‘Where Do Companies Do Their Business?’, which has been reproduced by NTA in the exam. NCERT (2026-27 Edition): “Where Do Companies Do Their Business? In the Markets or in the Society? … The area of corporate social justice fall under two broad categories. The issues such as the nutrition of children, child care, old-age homes, amelioration of hunger, offering aid to those affected by natural calamities, etc. needing instant attention with humanitarian perspective, comes under the first category. The issues that contribute to making society a pleasant place to live in the long run, may be grouped under the second category. …” |