Final answer:
Corporate Social Responsibility (CSR) refers to a company's commitment to operate in an economically, socially, and environmentally sustainable manner, while considering the impacts of its actions on both the society and the broader community.
Step-by-step explanation:
The term that refers to a company's obligation to pursue goals and policies that are in society's best interest is Corporate Social Responsibility (CSR). CSR represents the strategies corporations employ to monitor their adherence to law, ethical standards, and international norms to promote accountability to the society in which they operate. It contrasts with shareholder primacy, which prioritizes maximizing shareholder returns. Furthermore, stakeholder theory posits that managers should consider the interests of all stakeholders, not just shareholders, in their decisions. Corporate governance, on the other hand, pertains to the mechanisms, processes, and relations by which corporations are controlled and directed, not necessarily aligning directly with the pursuit of societal interests.