Question

Which of the following propositions of the Davis Model of Corporate Social Responsibility states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous?

A) Proposition 5: Business institutions, as citizens, have the responsibility to become involved in certain social problems that are outside their normal areas of operation.

B) Proposition 1: Social responsibility arises from social power.

C) Proposition 3: The social costs and benefits of an activity, product, or service shall be thoroughly calculated and considered in deciding whether to proceed with it.

D) Proposition 4: The social costs related to each activity, product, or service shall be passed on to the consumer.

E) Proposition 2: Business shall operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.

Answer

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