Question

The classical view of social responsibility holds that spending time, money, labor, or energy to improve society's welfare would ________. help maximize profits for stockholders show stockholders that the company knows best not have any positive or negative impact on stockholders deprive stockholders of resources that could be used to generate profits

Answer 1

Answer: deprive stockholders of resources that could be used to generate profits

Explanation: The classical view on corporate social responsibilities simply put is this: The only social responsibility of business is to maximise profits.

Given the above, the application of resources such as time, money, labor, or energy to improve the welfare of the society is in direct contrast with this view and so could deprive stockholders of resources that could be used to generate profits. The mangers are in control to maximise revenue for shareholders as obligated by the employment contract. Every resource therefore, should be applied to the primary goal of business—profit, while corporate social responsibilities and ethical custom are relegated to the background.

Answer 2

Answer:

Deprive stockholders of resources that could be used to generate profits.

Explanation:

The classical view of social responsibility is majorly concerned with making profit. Resources such as time , money, labour or energy are always channelled towards the primary goal of making profit without regards for the social welfare or corporate social responsibilities. This view was proposed by Milton Friedman in 1962.

The correct answer is therefore: spending time, money, labor, or energy to improve society's welfare would deprive stockholders of resources that could be used to generate profits