Definition

Economic responsibilities

Strategic managers can consider four types of social commitment ,economic responsibility is one of them:

Economic responsibilities are the most basic social responsibilities of business. As we have noted, some economists see these as the only legitimate social responsibility of business. Living up to their economic responsibilities requires managers to maximize profits whenever possible. The essential responsibility of business is assumed to be providing goods and services to society at a reasonable cost. In discharging that economic responsibility, the company also emerges as socially responsible by providing productive jobs for its workforce, and tax payments for its local, state, and federal governments.

Economic responsibilities: The duty of managers, as agents of the company owners, to maximize stockholder wealth.

Share it:  Cite

More from this Section