The manager of a large chain recently spoke to a group of college students about making it in the business world.He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society.In doing so, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders' interests.What concept do the manager's comments reveal?

Question

Quizplus · Accepted Answer

The manager's comments reveal the economic model of social responsibility, which emphasizes that a company's primary responsibility is to produce and market profitable products needed by society while also acting in the interests of stockholders who invest to earn a return on their investment. This model prioritizes economic success over social responsibility.

The Manager of a Large Chain Recently Spoke to a Group