Lesson 14 ( Corporate social responsibility and ethics )

Question 1

define social obligation

Answer 1

when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities

Question 2

define classical view

Answer 2

the view that management’s only social responsibility is to maximize profits

Question 3

The Socioeconomic View

Answer 3

1. Socioeconomic view:
   the belief that managers have social responsibilitiesbeyond maximizing profits to protect and improve society’s wellbeing
2. Social responsiveness:
   when a company engages in social actions in response to some popular social need
3. Social responsibility:
   Beyond its responsibilities under law and in the economy, a company’s aim is to act morally and in ways that benefit society.