Too much power. C. From obligations to responsiveness. Three different levels of social involvement can be defined. Social responsibility is defined as an obligation beyond that required by law and economics for a firm to pursue long-term goals that are good for society. Social obligation defines the obligation of a business to meet its economic and legal responsibilities.
Social responsiveness is the capacity of a firm to adapt to changing societal conditions.
The question of whether or not socially responsible activities lower a company's economic performance has been addressed in numerous studies. The majority of studies found a positive relationship between corporate social involvement and economic performance. B. Another way of looking at this issue is to look at the performance of socially conscious mutual stock funds. These mutual funds provide a way for individual investors to support socially responsible companies. The most meaningful conclusion that can be made is that there is little substantive evidence that a company's socially responsible actions significantly reduce its long-term economic performance.