Final answer:
According to the book's model, social responsibility is divided into 'Discretionary, legal, economic, and ethical' sections, reflecting the multifaceted nature of corporate governance as it pertains to societal expectations and norms.
Step-by-step explanation:
According to the book's model for judging corporate social performance, social responsibility is divided into four sections. The correct option that represents these sections is 'd. Discretionary, legal, economic, and ethical'. This model of corporate social responsibility (CSR) suggests that a corporation's actions can be categorized into these four areas:
- Economic Responsibility: This refers to the basic role of businesses to produce goods and services that society wants and to make an acceptable profit in the process.
- Legal Responsibility: Corporations are expected to pursue their economic responsibilities within the framework of legal requirements.
- Ethical Responsibility: Beyond economic and legal responsibilities, ethical responsibilities include behaviors and practices that are expected or prohibited by societal members even though they are not codified into law.
- Discretionary Responsibility: These responsibilities are voluntarily adopted by businesses and can include philantrophic contributions, educational and community programs, and other actions that fall outside of a firm's direct economic or legal obligations.
Assessing corporate responsibility involves considering various ethical, economic, and legal aspects, especially as emerging technologies present new challenges. For example, the ethical use of artificial intelligence raises significant questions about privacy, safety, and fairness, which are linked to the broader concept of social responsibility. Compounding this, different countries have unique approaches and regulations, contributing to the complexity of establishing universal ethical practices.