When a company does the minimum that the law requires, it is ...

[cdr_15]

When a company does the minimum that the law requires, it is meeting its ________.
 
  A) social responsiveness goal
  B) economic responsibility
  C) ethical responsibility
  D) social obligation

Question 2

The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would ________.
 
  A) deprive stockholders of resources that could be used to generate profits
  B) not have any positive or negative impact on stockholders
  C) help maximize profits for stockholders
  D) show stockholders that the company knows best

[mrphibs]

Answer to Question 1

Answer: D
Explanation: Social responsiveness goes beyond the minimum that the law requires and entails responding to some popular social need. An ethical responsibility also goes beyond a minimal legal stance, requiring a company not only to obey all laws but also to behave in a way that is fair and just. An economic responsibility requires the firm to pursue financial goals only. That leaves a social obligation, which may include only what is legally necessary as the minimum that a company must do.

Answer to Question 2

Answer: A
Explanation: The classical view of social responsibility holds that any use of resources that does not explicitly seek to increase profits is wasteful and deprives stockholders of the income that would otherwise be theirs. This means that spending on social welfare has a negative impact on profits, thus ruling out the choices regarding not having any impact on stockholders and maximizing profits for stockholders as correct responses. The idea that the company knows better than stockholders is not part of the classical view of social responsibility.