Societal responsibility refers to the obligation of a firm to price its goods or
ID: 356221 • Letter: S
Question
Societal responsibility refers to the
obligation of a firm to price its goods or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
obligation that organizations have to (1) the preservation of ecological environment and (2) the general public.
view that an organization has an obligation only to those constituencies that can affect achievement of its objectives.
view that the first and foremost obligation of a firm is to meet the objectives set by its stockholders and board of directors.
view that a portion of profit (after taxes) should be reinvested in a socially or environmentally beneficial endeavor.
obligation of a firm to price its goods or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
obligation that organizations have to (1) the preservation of ecological environment and (2) the general public.
view that an organization has an obligation only to those constituencies that can affect achievement of its objectives.
view that the first and foremost obligation of a firm is to meet the objectives set by its stockholders and board of directors.
view that a portion of profit (after taxes) should be reinvested in a socially or environmentally beneficial endeavor.
Explanation / Answer
The answer is the second option that is:
=> Obligation that organizations have to (1) the preservation of ecological environment and (2) the general public
Lets try to arrive at the answer by the elimination of other options:
1. Although its a fair point but the firm can price it's product as it pleases so the responsibility is not on pricing.
3. This is clearly wrong as the company cannot just care about itself.
4. Although this is true but it's not correct in the context fot the question.
5. This is true but comes under the Corporate Social responsibility aspect and it's not complusory for the firm to do so.
That leaves only the second option as the answer.