alleryStart learning →Can a company act irresponsibly while staying within the law?
AYes, some actions are irresponsible yet legal
BNo, legality and responsibility always coincide
CNo, any irresponsible act is illegal by definition
DYes, but only for firms that are not listed
Answer & Solution
Correct answer: A. Yes, some actions are irresponsible yet legal
1. Company behavior falls into three categories, namely illegal and irresponsible, irresponsible but legal, and legal and responsible.
2. Sometimes companies act irresponsibly and yet their actions are legal.
3. Unsubstantiated health claims about a product are the kind of conduct that can fall in that middle band.
4. Legality and responsibility are therefore two separate dimensions rather than one, and listing status makes no difference.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.3 Understanding Social Responsibility_
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