Question

    What is the classical view of management’s social

    responsibility? 
    A Create comfortable work environment at workplace Correct Answer Incorrect Answer
    B Welfare of the low paid employees Correct Answer Incorrect Answer
    C Profit maximisation Correct Answer Incorrect Answer
    D Customer satisfaction Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    The classical view was focussed on maximising the profit at all costs. Later the concept of 3 P (Profit, people, planet) or triple bottom became important. The phrase “the triple bottom line” was first coined in 1994 by John Elkington, the founder of a British consultancy called Sustainability. His argument was that companies should be preparing three different (and quite separate) bottom lines. One is the traditional measure of corporate profit—the “bottom line” of the profit and loss account. The second is the bottom line of a company's “people account”—a measure in some shape or form of how socially responsible an organisation has been throughout its operations. The third is the bottom line of the company's “planet” account—a measure of how environmentally responsible it has been. The triple bottom line (TBL) thus consists of three Ps: profit, people and planet.

    Practice Next
    More Financial Institutions Questions
    ask-question