Question

Dorothy believes that managers are responsible for running a business ethically, even though being profitable is the primary concern. Which notion does Dorothy subscribe to?

		Profit Maximization
		Profit Governance
		Soldiering System
		Corporate Social Responsibility

Answer 1

D. Corporate social responsibility

A business may have the prime motive of increasing the profits but it has a duty towards the society it recieves support from. All factors, namely, workers, materials, money etc are received because of the society and thus contributing or giving back to the society is considered and called corporate social responsibility.

In the question, Dorothy's point is profit is primary concern but being ethical which means being fair to the society is also an important aspect of the business. As defined above, it is called corporate social responsibility because it is the responsibility of company or managers to be ethical and by doing so they discharge their responsibilities.