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. Corporates that embrace the deepest social values have been successful in building powerful brands, and, eventually, robust customer relationships. The area of corporate social justice falls 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. come 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 discrimination (on the basis of caste, community, religion, ethnicity, race, and sex), eradication of poverty, preservation of culture, values, and ethics, etc. Procter and Gamble’s (P&G) philosophy is that it should lead the industry in implementing a global environmental programme. P&G contributes to sustainable development and addresses environmental and social issues connected with its products and services.
The Procter and Gamble’s (P&G) philosophy is truly explained by:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → It should lead the industry in implementing a global environmental programme
Option (1) It should lead the industry in implementing a global sustainable programme — Incorrect. P&G does contribute to sustainable development, but the passage mentions that separately. It does not state it as the philosophy.
Option (2) It should lead the industry in implementing a global educational programme — Incorrect. Education appears only in the list of social issues, not as P&G’s philosophy.
Option (3) It should lead the industry in implementing a global technical programme — Incorrect. No technical programme is mentioned.
Option (4) It should lead the industry in implementing a global environmental programme — Correct. The passage states P&G’s philosophy in exactly these words. It is an example of a company taking up a social concern, here the environment. Such concern adds to the strength of the brand, which is the point the whole passage makes.
Note: The passage is the NCERT case study ‘Where Do Companies Do Their Business? In the Markets or in the Society?’, 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? … 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.” |