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The theory distinguishes between three different behaviours. The first behaviour is social obligation which is a company responding to only economic and legal constraints. The second behaviour is social responsibility which is the company acting accordingly to prevailing social norms, values and expectations of performance. The third behaviour is social responsiveness which means that the company adopts their actions to social needs.
b) Business Ethics Theory: There has been a growing body of thought which may loosely be labelled Business Ethics Theory. The theory is a response to the neo-economic currents stating that ultimate objective of companies is to maximise market value and that this objective lead to maximal social welfare...
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