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Mallory bought shares of Target stock in hopes that she would make a profit she could put toward her children's college funds. Which dimension of corporate social responsibility is Mallory relying on from Target?

Multiple choice question.
a. Social
b. Economic
c. Legal
d. Philanthropic
e. Ethical

User Marten
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1 Answer

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Final answer:

The correct answer is option b. Mallory is relying on Target's economic dimension of corporate social responsibility because she purchased shares hoping for a profitable return to support her children's college funds. This aspect focuses on a corporation's profitability and providing returns to shareholders.

Step-by-step explanation:

When Mallory buys shares of Target stock with the expectation of making a profit, she is interacting with the economic dimension of corporate social responsibility (CSR). The economic responsibility of a corporation is to be profitable, which directly aligns with shareholders' interests like Mallory, who is looking to fund her children's college education through her investment returns.

Target's economic responsibilities involve being financially strong and providing a return on investment to its shareholders. This is grounded in the perspective famously outlined by economist Milton Friedman, who argued that the social responsibility of business is to increase its profits. While there are other dimensions of CSR, including legal, ethical, social, and philanthropic responsibilities, in the context of Mallory's expectation of profit, the economic dimension of CSR is the focus.

However, it is important to note that while corporations strive to be profitable, they also have to balance this goal with social, legal and ethical obligations. For instance, companies may support their employees' well-being, comply with laws and regulations, operate ethically, and contribute to the community through philanthropic efforts. These additional responsibilities form a multi-faceted approach to corporate social responsibility, but Mallory's goals as a shareholder are directly related to the economic component.

Therefore, the correct option in response to the question is b. Economic.

User Moustafa Sallam
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