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ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Brightwell Retail's chair says: 'Our only social responsibility is to make a profit within the rules of the game, and that is where shareholders' interest ends.' Which position on corporate social responsibility does this most closely reflect, using the Gray, Owen and Adams spectrum of attitudes?

This is the pristine capitalist position. The chair sees the company's only responsibility as maximising profit for shareholders within the law, rejecting wider obligations to other stakeholders. Expedient, social contract and social ecologist positions all accept broader responsibilities to some degree.

  1. APristine capitalistCorrect
  2. BExpedient
  3. CSocial contract
  4. DSocial ecologist

Explanation

The pristine capitalist view (Friedman-style) holds that the firm's sole duty is to maximise shareholder wealth within the law. Expedient views see CSR as useful only where it brings business benefit, so they are distinct. Social contract and social ecologist views accept wider obligations to society or the environment, which the chair rejects.

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