The correct answer is option 1- (A) and (C) only.
A) Violation of profit maximisation objective- Arguments against social responsibility
B) Converting problems into opportunities- Arguments in favour of social responsibility
C) Burden on consumers-Arguments against social responsibility
D) Availability of resources with business- Arguments in favour of social responsibility
- Violation of profit maximisation objective: According to this argument, business exists only for profit maximisation. Therefore, any talk of social responsibility is against this objective. In fact, business can best fulfill its social responsibility if it maximises profits through increased efficiency and reduced costs.
- Converting problems into opportunities- Business with its glorious history of converting risky situations into profitable deals, can not only solve social problems but it can also make them effectively useful by accepting the challenge.
- Burden on consumers: It is argued that social responsibilities like pollution control and environmental protection are very costly and often require huge financial investments. In such circumstances, businessmen are likely to simply shift this burden of social responsibility by charging higher prices from the consumers instead of bearing it themselves. Therefore, it is unfair to tax the consumers in the name of social responsibility.
- Availability of resources with business: This argument holds that business institutions have valuable financial and human resources which can be effectively used for solving problems. For example, business has a pool of managerial talent and capital resources, supported by years of experience in organising business activities. It can help society to tackle its problems better, given the huge financial and human resources at its disposal.
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