Question

Which is applicable in the nature of social responsibility of management?

• A. Rule of Buyer beware
• B. Rule of Seller beware
• C. Rule of Government beware
• D. None of these

Hint:

Remember the Latin terms: {Caveat Emptor} (Buyer Beware) is the traditional view, while {Caveat Venditor} (Seller Beware) is the modern view aligned with social responsibility and consumer protection.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks which principle applies to the concept of social responsibility of management, particularly concerning the relationship between a business and its customers.
Step 2: Key Concept:
The concept of social responsibility holds that a business has an obligation to act in a way that benefits society at large. This includes ethical practices towards consumers.
- Rule of Buyer Beware (Caveat Emptor): An old principle where the buyer was solely responsible for checking the quality and suitability of goods before purchase.
- Rule of Seller Beware (Caveat Venditor): A modern principle where the seller is responsible for providing accurate information and ensuring the quality and safety of the products they sell.
Step 3: Detailed Explanation:
The modern idea of social responsibility of management has shifted the burden of responsibility from the buyer to the seller. It is now believed that businesses have a moral and social duty to protect consumers' interests. This means they must provide products that are safe, of good quality, and accurately represented. They are responsible for any harm caused by their products. This shift in principle from 'Caveat Emptor' to 'Caveat Venditor' is a core aspect of social responsibility. Therefore, the 'Rule of Seller beware' is the applicable principle.
Step 4: Final Answer
The principle of 'Rule of Seller beware' (Caveat Venditor) is applicable to the social responsibility of management, as it places the responsibility on the business to ensure consumer welfare.