The __________ reason, why corporations should care about social responsibility, is based upon the recognition that business must use its power responsibly in society or risk losing it. Corporations exist as legal entities with certain advantages (such as limited liability) because society allows them to do so, and these corporate rights and advantages can be removed from firms that are perceived to be irresponsible.

Question

Quizplus · Accepted Answer

The pragmatic reason emphasizes the practical aspect of maintaining a positive societal image to preserve the privileges granted by society, such as limited liability and corporate rights, which can be at risk if a corporation is perceived as irresponsible.

The __________ Reason, Why Corporations Should Care About Social Responsibility