In Carroll's pyramid of corporate social responsibility, which responsibility forms the economic foundation?
Correct answer: A. Being profitable and financially sustainable
- A. Being profitable and financially sustainable
- B. Supporting voluntary charitable projects
- C. Obeying laws imposed by public authorities
- D. Meeting society's expectations of moral conduct
Explanation
Carroll places economic responsibility at the base because a business must remain financially viable to meet its other responsibilities. Legal, ethical, and philanthropic responsibilities are additional levels of the pyramid.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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