Modern Corporation operates a steel mill.They have never contributed anything to the local community and they knowingly pollute both the air and river that runs by their mill.Their reasoning is that the cost to install pollution control devices would diminish their profits and they don't support the community because they provide jobs and don't think they owe anything else to the citizens in their area.Donating to the community would also diminish profits.Which theory of corporate social responsibility are they exhibiting?

Question

Quizplus · Accepted Answer

The narrow view or invisible hand theory believes that a corporation's only responsibility is to maximize profits for its shareholders and that any sort of social responsibility or community engagement would diminish those profits. This aligns with Modern Corporation's stance on not contributing to the community or implementing pollution control devices.

Modern Corporation Operates a Steel Mill