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 example of P&G’s environmental initiatives mainly supports which broader argument of the passage?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Social responsibility and business success are interlinked
Option (1) Social responsibility and business success are interlinked — Correct. The passage argues that social concern adds to the strength of the brand, and that companies with deep social values have built powerful brands and strong customer relationships. P&G is its example: it leads its industry in environmental programmes, such as concentrated products, recycled bottles and refill packs, and it is also a highly successful company. So doing good for society and doing well in business go together.
Option (2) Environmental programmes hinder profitability — Incorrect. The passage says the opposite. It presents P&G’s environmental work as a strength.
Option (3) Multinational corporations should avoid local issues — Incorrect. The passage asks companies to satisfy all their stakeholders and to address social issues, not to avoid them.
Option (4) Consumer products have no environmental impact — Incorrect. P&G studied the influence of consumer products on the environment because they do have an impact.
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? 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. …” “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.” |