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 passage primarily argues that a company’s survival depends on:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Balancing the interests of consumers and a wide range of societal stakeholders
Option (1) Maximizing profits through customer satisfaction — Incorrect. The passage says that survival does not depend on consumers alone. Satisfying customers is needed, but it is not enough.
Option (2) Managing only its market competition effectively — Incorrect. The passage does not discuss competition. Its point is that a company must look beyond the market.
Option (3) Balancing the interests of consumers and a wide range of societal stakeholders — Correct. The passage opens with this idea: a company’s survival depends not on its consumers alone but on a diverse set of stakeholders, such as the government, religious leaders, social activists, NGOs and the media. Their satisfaction matters as much, because they add to the power of the brand by word of mouth.
Option (4) Expanding operations across global markets — Incorrect. The passage mentions a global environmental programme of P&G, but it does not say that survival depends on spreading into new markets.
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. …” |