Georgia Assessments for the Certification of Educators GACE Practice Test

A manufacturing company implements anti-pollution measures as outlined by applicable legislation but opts not to adopt any additional anti-pollution measures. This company has most likely adopted which of the following approaches to business-society relations?

1. Cost-benefit Approach

2. Social Obligation Approach

3. Social Responsibility Approach

4. Social Responsiveness Approach

The correct answer is: Cost-benefit Approach

The scenario describes a company that adheres solely to the minimum requirements set by legislation regarding anti-pollution measures. This demonstrates a cost-benefit approach, as the company has evaluated the costs associated with implementing anti-pollution measures against the benefits of compliance with legal regulations. By choosing only to meet legal standards without going further, the company is prioritizing its financial interests while fulfilling its basic obligations. In contrast, a social obligation approach suggests that a company engages with its responsibilities primarily to meet the expectations of society and legal requirements, but might not be as focused on the cost-benefit analysis. The social responsibility approach implies a broader commitment to ethical practices beyond legal compliance, including proactive measures. Lastly, a social responsiveness approach indicates a more dynamic engagement with societal needs, adapting policies and practices based on public expectations and stakeholder concerns. The decision of the company to limit its actions to what is legally required aligns clearly with a cost-benefit perspective.