Kenneth J Arrow | Social Responsibility and Economic Efficiency

question 61

Multiple Choice

Kenneth J. Arrow | Social Responsibility and Economic Efficiency
Arrow first reveals the shortcomings in arguments against the social responsibility of firms, or in arguments for profit maximization, setting the stage for why firms should be held responsible to society. In particular, corporations should be held responsible for the harms they cause, such as pollution and traffic congestion, for which they do not pay any costs. Lastly, regulations for such social obligations should be embodied in institutional, legal, or ethical manner, so all firms will accept that their competitors will also be held liable for their fulfillment.
-Since knowledge is ___________ between all professionals and clients, ethical principles have been put in place that afford some protection to the client.

• A) the same
• B) equal
• C) unequal
• D) transparent

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Definitions:

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The strategic or tactical legal actions undertaken by individuals or entities to achieve a specific outcome within the legal system.

Lt. Charles Wilkes

A U.S. Navy officer who led the United States Exploring Expedition, achieving significant maritime and geographical discovery in the early 19th century.

Smithsonian Institute

An educational and research institution and associated museum complex, primarily located in Washington, D.C., established for the increase and diffusion of knowledge.

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An advanced stage of human social development and organization that includes the development of cities, writing, arts, sciences, and complex governance.