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If an organisation raises funds from investors by claiming to provide social service but does not provide the actual service, what is the problem?

Answer and explanation

Correct answer: Misuse of the social objective and ethical weakness

The governing concept is that a social objective must involve genuine responsibility and actual benefit to society, not merely a public claim. If an organisation collects investors’ money by presenting an image of social service but fails to deliver that service, it misleads stakeholders and misuses a socially desirable idea for private advantage. Option A is correct because the conduct reflects both ethical weakness and misuse of the social objective. Option B is not established, since the facts do not show employee welfare or personal development. Option C is also wrong because raising funds or attracting attention does not prove healthy organisational growth. Option D is unrelated to the issue. Genuine social responsibility requires transparency, honest performance, accountability, and evidence of the promised service.

Related tags

Social ObjectiveEthicsStakeholder AccountabilityObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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