Which of the following statements about the point ‘social responsibility’ is incorrect?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Consumers form an important group among the many shareholders of business.
Option (1) A business has social responsibilities towards various interest groups. — True. The point opens with this line. A business has social responsibilities towards various interest groups.
Option (2) Consumers form an important group among the many shareholders of business. — False. Consumers are an important group among the many stakeholders of business. A stakeholder is any group whose interest is linked with the business, such as consumers, workers or society. Shareholders are the owners who hold the company’s shares, and consumers are not that group.
Option (3) Business organisations make money by selling goods and providing services to consumers. — True. This is why consumers matter to a business. It earns its money by selling goods and services to them.
Option (4) The interest of consumers has to be well taken care of by a business. — True. Like other stakeholders, the interest of consumers has to be well taken care of.
NCERT (2026-27 Edition): “From the point of view of Business … (iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.” |