Question:

In Mauritius, the government has reduced the corporate tax and consequently, it expects private sector organizations to spend a percentage of their profits on projects that will improve the welfare of the society. Some of the private sector organizations responded to this government policy by creating a corporate social responsibility department while others reinforced their existing projects.

(i) In this context, explain the difference between social obligation and social responsibility.

(ii) Discuss the importance of social responsibility for business organizations.