Social responsibility emphasizes an organization’s obligation to:

The correct answer focuses on the broader concept of stakeholder theory, which emphasizes that businesses have responsibilities not just to their shareholders but also to a wider range of stakeholders, including employees, customers, suppliers, the community, and the environment. Maximizing positive stakeholder impact means that an organization should actively seek to create value and goodwill for all parties that are affected by its operations.

This approach recognizes that a successful business is part of a larger social system and that its long-term viability depends on the well-being of the society in which it operates. By prioritizing the needs and impacts on various stakeholders, companies can improve their reputation, foster customer loyalty, and enhance employee satisfaction, which in turn can contribute to better overall performance and sustainability.

In contrast, options that focus solely on shareholder profits or minimizing operational costs overlook the importance of ethical considerations and long-term stakeholder relationships, which can lead to negative consequences for businesses in terms of reputational damage or loss of customers. Additionally, following government regulations is necessary for legal compliance but does not encompass the broader social responsibility that organizations should strive to uphold.