Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Social Responsibilities of Business and Business Ethics

Question:

Which of the following is not a reason for pollution control?

Options:

Reduction of health hazards

Establishment of compliance mechanisms

Reduced risk of liability

Cost savings

Correct Answer:

Establishment of compliance mechanisms

Explanation:

The correct answer is option 2- Establishment of compliance mechanisms.

Establishment of compliance mechanisms is an element of business ethics.

Business enterprises cannot remain unaffected by environmental destruction. They need to take suitable measures for pollution control not merely to avoid criticisms against them but also to enjoy other benefits of such measures. Some of the important reasons which make a case for pollution control are as follows:

(i)  Reduction of health hazards: There is increasing evidence that many diseases like cancer, heart attacks and lung complications are caused by pollutants in the environment. Pollution control measures can not only check the seriousness of such diseases but can also be supportive of a healthy life on earth.

(ii)  Reduced risk of liability: It is possible that an enterprise is held liable to pay compensation to people affected by the toxicity of gaseous, liquid and solid wastes it has released into the environment. Therefore, it is sound business policy to install pollution control devices in its premises to reduce the risk of liability.

(iii) Cost savings: An effective pollution control programme is also needed to save costs of operating business. Cost savings are particularly noticeable when improper production technology results in greater wastes which leads to higher cost of waste disposal and cost of cleaning the plants.

(iv) Improved public image: As society becomes increasingly conscious of environmental quality, a firm’s policies and practices for controlling wastes will increasingly influence people’s attitude towards its working. A firm that promotes the cause for environment will be able to enjoy a good reputation and will be perceived as a socially responsible enterprise.

(v) Other social benefits: Pollution control results in many other benefits like clearer visibility, cleaner buildings, better quality of life, and the availability of natural products in a purer form.