Question

Which of the following is a key aspect of social responsibility for boards of directors?

• A. Maximizing short-term profits
• B. Ensuring the rights of customers, employees, shareholders, suppliers, and local communities
• C. Reducing the number of employees
• D. Focusing solely on shareholder interests

Answer 1

Answer:

B. Ensuring the rights of customers, employees, shareholders, suppliers, and local communities

A key aspect of social responsibility for boards of directors is ensuring the rights of customers, employees, shareholders, suppliers, and local communities. This goes beyond just financial performance and emphasizes a company's ethical obligations to all of its stakeholders.

• Customers: The board is responsible for ensuring the company provides safe, high-quality products and services. This includes protecting customer data, providing clear and honest information, and handling complaints ethically.

• Employees: The board has a duty to ensure fair labor practices, safe working conditions, and equal opportunities. This includes preventing discrimination and ensuring a respectful work environment.

• Shareholders: The board's primary financial duty is to protect the interests of shareholders by ensuring the company is managed competently, transparently, and in a way that provides long-term value.

• Suppliers: Boards should ensure that the company engages in fair business practices with its suppliers, including timely payments and ethical sourcing.

• Local Communities: The board must consider the impact of the company's operations on the surrounding community. This includes minimizing environmental damage, creating local employment, and contributing to social welfare.