Question

Social responsibility is

(a) Same as legal responsibility

(b) Broader than legal responsibility

(c) Narrower than legal responsibility

(d) None of them

Answer 1

Social responsibility is broader than legal responsibility. Social responsibility implies the obligation on a business firm to undertake economic activities that contribute towards the overall welfare and development of society and its members. It is a much broader concept than legal responsibility, as legal responsibility can be fulfilled by merely complying with the law, whereas social responsibility deals with the overall welfare of society.

Hence, the correct answer is option (b).