Question

Managers who sell their stock in advance of other stockholders because they know that their company's performance is about to fall demonstrate the ________ approach to social responsibility.

Answer 1

Answer: Defensive

Explanation: The defensive approach to social responsibility is not much used by the companies nowadays, but companies following this approach meet their social responsibility objectives better than other.

The main focus on this approach is to make profits but managers make sure that they operate within the boundaries of law so that no legal action will be taken against them.

In the given case, the stockholder does not want any trouble with the clients whether legally or personally, thus, we can conclude that he is following defensive approach.