Societal Responsibility Refers to

question 101

Multiple Choice

Societal responsibility refers to

• A)the obligation that organizations have to (1)the preservation of ecological environment and (2)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:

Traditional Economic Theory

A framework that explains economic decisions and behaviors based on the assumption that agents are rational and seek to maximize utility or profit.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Cost Curves

Graphical representations of the various costs associated with producing different quantities of a good, including average and marginal costs.

Endowment Effects

A behavioral economics concept where individuals value an object more highly simply because they own it, influencing their willingness to trade or sell.