A firm may seek to balance conflicting goals of stakeholders to promote overall welfare, even at the expense of profits.This refers to the firm's social responsibility.

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Social responsibility refers to the idea that firms have a duty to act in ways that benefit society and not just their shareholders. Balancing the conflicting goals of stakeholders in order to promote overall welfare, even at the expense of profits, is an example of social responsibility.

A Firm May Seek to Balance Conflicting Goals of Stakeholders