Which of the following best defines social responsibility for a business?

The definition of social responsibility for a business is best encapsulated by the concept of providing a duty to treat all stakeholders fairly and honestly. This means that a business is not only concerned with making profits but also takes into consideration the impact of its actions on all parties involved. Stakeholders include employees, customers, suppliers, the community, and even the environment. A socially responsible business actively engages in practices that promote fair treatment, ethical behavior, and positive contributions to society, thereby demonstrating its commitment to balancing profit generation with societal well-being. This entails making decisions that reflect values of fairness, justice, and integrity, fostering trust and allowing for sustainable relationships with its stakeholders.

In contrast, maximizing profits at all costs is focused purely on financial gain without regard to ethical considerations or the well-being of others. Ensuring compliance with laws and regulations is a baseline requirement and does not necessarily encompass the broader ethical obligations a business might have. Focusing solely on customer satisfaction neglects the needs and rights of other stakeholders, which undermines the holistic approach that social responsibility demands.