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.
What leads to the power of the brand by word of mouth:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Giving satisfaction to consumers and stakeholders
Option (1) Distributing free gifts to consumer — Incorrect. A free gift is a sales promotion device for a quick rise in sales. The passage does not mention it.
Option (2) Giving discounts to consumer — Incorrect. A discount is also a sales promotion device, and the passage does not mention it either.
Option (3) Giving satisfaction to consumers and stakeholders — Correct. The passage says a company’s survival depends not only on its consumers but on many stakeholders: the government, religious leaders, social activists, NGOs and the media. Earning their satisfaction adds to the power of the brand by word of mouth. Word of mouth means satisfied people telling others about the brand. It costs the company nothing, and people trust it more than an advertisement.
Option (4) Giving Moral judgements to consumers — Incorrect. A business does not pass moral judgements on its consumers. The passage has no such idea.
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? 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.” |