The
Definition Of

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:

More from this Section

  • Reinforcers
    Consequences immediately following a behavior that increase the probability that the behavior will be repeated are called reinforcers.
  • Formality of strategic management
    The formality of strategic management system varies widely among companies. Formality refers to the degree to which participants, responsibilities
  • Self-monitoring
    Self-monitoring is a personality trait that measures the ability to adjust behavior to external situational factors.
  • Group cohesiveness
    Group cohesiveness is the degree to which group members are attracted to one another and share the group’s goals.
  • Stalemate Business
    Business with few some sources of advantage, most of them small. Skills in operational efficiency, low overhead and cost management are critical to profitability.
  • Plans
    Plans are documents that outline how goals are going to be met. They usually include resource allocations, schedules, and other necessary .
  • Equity theory
    Equity theory is the theory that an employee compares his or her job’s input: outcomes ratio with that of relevant others and then corrects