Answered: Managers at a well-known company sold…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Managers at a well-known company sold their stock in advance of other shareholders because they knew that their company's performance was about to fall. This demonstrates the _______ approach to social responsibility.

proactive

accommodative

reactive

defensive

obstructionist

Expert Solution

Introduction:

'Social responsibility' is a concept that refers to the obligations of individuals, organizations, and businesses to 'act' in the 'best interests' of their communities and the environment.
This includes taking into consideration the impact of their decisions and actions on stakeholders such as employees, customers, suppliers, and the wider society.
In a business context, social responsibility can 'take' many 'forms', such as implementing environmentally friendly practices, promoting diversity and inclusion, and engaging in philanthropic activities.
It is becoming increasingly important as consumers, employees, and investors demand that companies take an active part in addressing social and environmental issues.
Companies that embrace social responsibility often see benefits such as increased customer loyalty, enhanced reputation, and improved employee morale.