5 Questions
Which phase of the Social Responsibility Framework focuses on profit maximization?
Phase 1
Aside from profit maximization, what is the concern of management in Phase 2 of the Social Responsibility Framework?
Maintaining a fair balance in the interests of employees
In which phase of the Social Responsibility Framework is management considered as an instrument of stockholders and a trustee for all groups who contributed to the business enterprise?
Phase 2
What is one of the problems that were given little attention in Phase 1 of the Social Responsibility Framework?
Unsafe working conditions
What is one of the abuses of capitalism that were extremely rampant in Phase 1 of the Social Responsibility Framework?
Child labor
Study Notes
Social Responsibility Framework Phases
- Phase 1 focuses on profit maximization, which led to neglect of other important aspects, including social and environmental concerns.
- One of the problems that received little attention in Phase 1 is social welfare.
- Rampant abuse of capitalism was a significant issue in Phase 1.
Phase 2 Concerns
- Aside from profit maximization, management's concern in Phase 2 includes ethical responsibilities towards stakeholders.
Phase 3 Management Role
- In Phase 3, management is considered an instrument of stockholders and a trustee for all groups that contributed to the business enterprise.
Test your knowledge on the Social Responsibility Framework Phase 1, focusing on profit maximizing management characteristics. Explore the concept of maximizing profit, individual drive for profit, and the role of business systems in eliminating economic scarcity. Understand the challenges of unsafe working conditions, starvation wages, and child labor in the pursuit of profit.
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