What concept describes a company’s obligation to behave ethically toward society and the environment beyond profit?

What concept describes a company’s obligation to behave ethically toward society and the environment beyond profit?

• A. Corporate governance
• B. Profit maximization
• C. Market dominance
• D. Corporate social responsibility (CSR)

Answer: (B)

Corporate social responsibility describes a company's obligation to behave ethically toward society and the environment beyond profit. It covers actions that consider the wider impact of business decisions on stakeholders—employees, customers, communities, and the planet—through ethical practices, environmental stewardship, fair labor, sustainable sourcing, transparent reporting, and community engagement. This fits the question because it explicitly centers duties to society and the environment beyond simply earning profits. By contrast, corporate governance focuses on the mechanisms for directing and controlling the firm; profit maximization is about pursuing financial gains as the primary goal; market dominance is about competitive position. So CSR is the concept that captures the idea of ethical responsibility to society and the environment beyond profit.

Corporate social responsibility describes a company's obligation to behave ethically toward society and the environment beyond profit. It covers actions that consider the wider impact of business decisions on stakeholders—employees, customers, communities, and the planet—through ethical practices, environmental stewardship, fair labor, sustainable sourcing, transparent reporting, and community engagement. This fits the question because it explicitly centers duties to society and the environment beyond simply earning profits. By contrast, corporate governance focuses on the mechanisms for directing and controlling the firm; profit maximization is about pursuing financial gains as the primary goal; market dominance is about competitive position. So CSR is the concept that captures the idea of ethical responsibility to society and the environment beyond profit.