Economic responsibility is one of the four social commitments that can be considered by strategic managers.
These responsibilities are the duties of managers, as agents of the company owners, to maximize stockholder wealth.
Economic responsibilities mean ensuring an economic advantage both to the region from where the purchase arrived and to the region where it is marketed.
These 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 wherever and 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.
Use of the Term in Sentences:
- The managers are bound to perform their economic responsibilities.
- The business is committed to generating economic value for its clients, business communities, and society as part of its economic responsibilities.