Sinbad Cola, a soft drink manufacturer, recently opened a plant in Buron. The wastages from the plant were dumped in the Buron Sea, situated a mile away from the plant. Dumping of wastes in the sea resulted in water pollution, which negatively affected the Buron fishing business, and also resulted in groundwater contamination. Sinbad Cola compensated by bringing contamination levels down with additional filters and paying damages to the local fishermen. Which theory of business social responsibility did Sinbad Cola meet when they compensated for their harmful wastage 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 met this responsibility by taking steps to reduce contamination and compensating the affected fishermen.

Sinbad Cola, a Soft Drink Manufacturer, Recently Opened a Plant