Green Valley Foods now applies the principle of equity not to wages alone. It also gives fair value to its customers, takes care of the environment and deals fairly with its business associates. Which point of significance of principles of management does this show?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Fulfilling social responsibility
Option (1) Meeting changing environment requirements — Incorrect. This means principles are modified to suit a changing business environment. For example, companies now specialise in their core work and give up non-core businesses. Fair dealing with customers and the environment is not a change of business focus.
Option (2) Optimum utilisation of resources and effective administration — Incorrect. This means resources give maximum benefit with minimum cost, and managerial power is used impersonally. Neither is about fairness to customers and the environment.
Option (3) Fulfilling social responsibility — Correct. Public awareness pushes businesses to fulfil their social responsibilities, and principles take newer meanings with time. Equity today does not apply to wages alone; value to the customer, care for the environment and dealings with business associates also come under it. Green Valley Foods applies equity in this wider sense.
Option (4) Providing managers with useful insights into reality — Incorrect. This means principles add to the manager’s knowledge and help managers learn from past mistakes and solve recurring problems quickly. It is about the manager’s own learning.
NCERT (2026-27 Edition): “(v) Fulfilling social responsibility: The increased awareness of the public, forces businesses especially limited companies to fulfill their social responsibilities. Management theory and management principles have also evolved in response to these demands. Moreover, the interpretation of the principles also assumes newer and contemporary meanings with the change in time. So, if one were to talk of ‘equity’ today, it does not apply to wages alone. Value to the customer, care for the environment, dealings with business associates would all come under the purview of this principle. …” |