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 so doing,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 businesses should focus primarily on maximizing profits for shareholders and fulfilling their legal obligations. This model does not prioritize the concerns of society or other stakeholders.

The Manager of a Large Chain Recently Spoke to a Group