: Go Earth Ltd. manufactures jute bags and its factory have been set up in a
residential area. The company has employed unskilled and semi- skilled workers and pay
them lower wages on the pretext of at least providing jobs as the employment opportunities
in the area is quite limited. During the production process, lots of residual is left. In order to
decrease cost and increase profitability, the company dumps residual in the residential area
which is sold after substantial time gap. This practice causes lot of inconvenience to the
residents of that area.
On the basis of the given information about Go Earth Ltd., answer the following questions:
(a) Identify and explain the objective of management which is ignored by the company.
(b) Identify any two values which the company has violated,
Answers
a)
The objective of management which is ignored by Go Earth Ltd., is Social Objectives.Social Objective refer to consistently creating economic value for various sections ofthe society. Business is an integral part of society. It makes use of resources ofsociety. It earns profit by selling its products or services to members of society. So itbecomes obligatory on the part of the businessman to do something for the society.The important social objective of business are as follows:
Production and supply of quality goods and services.
Using fair trade practices.
Generation of employment.
Employee welfare.
Community service.
Helping government at time of natural calamity etc
b)
The values which the company has violated are
I.Fulfilling social responsibility
2. Concern for employees