Question

all are True or false

stakeholders Theory represents a change in identity from a focus on profits to a focus value creation. true or false

the conventional view of the firm suggest that firms should maximize profits even if it requires violating the law. true or false

the main idea behind Corporate social responsibility is that firms should sacrifice profits in order to make the world a better place. true or false

according to the concept of corporate social responsibility a firm is acting unethically if it does not fulfill its philanthropic responsibility. true or false

true or false firms are solely responsible for making profits therefore they have no responsibilities to hire and fire employees in a responsible manner. true or false

Answer 1

ITEM	TRUE/ FALSE	REMARKS
Stakeholder theory represents a change in identity from a focus on profits to focus on value creation	TRUE	It is only shareholders whose main focus is profit. There are other entities too who are interested in activities of the organization and they are called Stakeholders. Stakeholders include customers, employees, Interest groups, government etc and their interest in company go much beyond profit
The conventional view of the firm suggest that firms should maximize profit even if it requires violating the law	FALSE	Conventional view is definitely to make profits , but not at the cost of violating regulations
The main idea behind corporate social responsibility is that firms should sacrifice profits in order to make the world a better place	FALSE	The main idea behind Corporate social responsibility is that firms should channelise part of profits in such activities so that it can give back to society in which it exists
Accordingly to concept of corporate social responsibility a firm is acting unethically if it does not fulfil its philanthropic responsibility	FALSE
Firms are solely responsible for making profits therefore they have no responsibilities to hire and fire employees in a responsible manner	FALSE	Employees are key to success of companies including making profits . Therefore , it is essential that companies should treat its employees responsible manner