Which of the following statements is true of the social contract approach to corporate management?

Question

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The social contract approach to corporate management argues that corporations have an obligation to meet the demands of society rather than just the demands of a targeted group of customers. This is the modern view, as opposed to the old social contract which focused on equal advancement in the quality of life and economic growth. The consequences of the modern social contract approach are not necessarily negative and do not necessarily include rising costs and lower wages than inflation. The main focus of the old social contract was on maintaining a longer-term perspective rather than just delivering quarterly earnings numbers.

Which of the Following Statements Is True of the Social