Sinbad Cola, a soft drink manufacturer, opened a plant in Buron. The waste from the plant was released into the Buron Sea, which was situated a mile away from the plant. Releasing the wastes into the sea resulted in water pollution and groundwater contamination. The water pollution in turn negatively affected Buron's fishing business. Sinbad Cola compensated for this by bringing the contamination levels down with additional filters and paying for the damages to the local fisheries. Which theory of business social responsibility did Sinbad Cola comply with when it compensated for its harmful waste disposal methods?

Question

Quizplus · Accepted Answer

The moral minimum theory of business social responsibility suggests that a company's duty is to avoid causing harm and to compensate for any harm it inadvertently causes. Sinbad Cola's actions of bringing contamination levels down and paying for damages align with this theory, as they took responsibility for the harm caused and made efforts to rectify it.

Sinbad Cola, a Soft Drink Manufacturer, Opened a Plant in Buron