Societal Responsibility Refers to

question 157

Multiple Choice

Societal responsibility refers to

• A) the obligation that organizations have to the preservation of the ecological environment and the general public.
• B) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
• C) the view that an organization has an obligation to those who can affect the achievement of its objectives.
• D) the duty of a firm to maximize profits for its owners or stockholders.
• E) the idea that organizations are part of a larger society and are accountable to that society for their actions.

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Definitions:

Marginal Cost

The amount spent to produce a further unit of a good or service.

Industry Curve

Refers to the graphical representation of the supply and demand equilibrium of an entire industry.

Coase Theorem

A principle in economics that suggests that if there are no transaction costs, parties can bargain privately to resolve conflicts of interest over resource allocation, leading to an efficient outcome.

Clog Dancing

A traditional type of folk dance where dancers wear shoes with wooden soles to produce percussive sounds.