Which of the following best describes the principle of social responsibility?

The principle of social responsibility centers on the idea that businesses have obligations not only to their shareholders but also to a broader range of stakeholders, which includes employees, customers, suppliers, the community, and the environment. When a company addresses the interests of various stakeholders, it recognizes that its operations can have significant impacts beyond just financial profits. This holistic approach reflects an ethical commitment to operating sustainably and responsibly.

Maximizing shareholder profit focuses primarily on financial outcomes for investors, potentially at the expense of other important factors such as employee welfare or environmental sustainability. Minimizing operational costs typically emphasizes efficiency and profitability, which can also overlook the ethical implications of cost-cutting measures that might harm stakeholders. Increasing market competitiveness is about enhancing a company's position in the marketplace, which might not necessarily align with the care for stakeholders' interests. In contrast, addressing stakeholders' interests reflects a balanced view that incorporates ethical considerations into business operations, which is at the heart of social responsibility.