Question

A business should have what kind of an approach?

• A. Profit earning
• B. Social responsibility
• C. Both (A) and (B)
• D. Either (A) and (B)

Answer 1

Answer: (C)

Both (A) and (B)

Companies are expected to meet society’s demands for goods and services, to provide employment, to contribute to the exchequer, and to operate efficiently at a profit. There is no conflict between social responsibility and the obligation on companies to use scarce resources efficiently and to be profitable—an unprofitable business is a drain on society. The essence of the contract between society and business is that companies shall not pursue their immediate profit objectives at the expense of the long-term interests of the community.