Which of the following statements about an organization's social responsibilities is true?
A) Ethical responsibilities are imposed by local town councils, provincial government, and federal regulatory agencies.
B) Discretionary responsibilities include responsibilities that are usually codified into law.
C) Legal responsibilities are guided by a company's desire to make social contributions to the community.
D) A business has an economic responsibility to stay in business and make a profit.
E) Economic responsibility is the highest criterion of social responsibility.

Question

Quizplus · Accepted Answer

An organization's economic responsibility to stay in business and make a profit is a primary criterion of social responsibility, as without economic sustainability, a business cannot fulfill any of its other responsibilities. Ethical responsibilities are based on moral principles and values rather than laws, and discretionary responsibilities are not usually codified into law. Legal responsibilities are obligations imposed by laws and regulations. While making social contributions can be a part of a company's legal or ethical responsibilities, it is not a defining characteristic of legal responsibilities. Economic responsibility is an important criterion for social responsibility, but it is not the highest criteria, as organizations have ethical, legal, and discretionary responsibilities as well.

Which of the Following Statements About an Organization's Social Responsibilities