Tom believes that adhering to laws and statutes passed by courts of law will make his pesticide manufacturing company socially responsible. In his company, business decisions are simply made to avoid breaking the law. Which theory of corporate social responsibility does Tom most likely follow?

Question

Kathryn Randall

Law

30 August, 03:36

Tom believes that adhering to laws and statutes passed by courts of law will make his pesticide manufacturing company socially responsible. In his company, business decisions are simply made to avoid breaking the law. Which theory of corporate social responsibility does Tom most likely follow?

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Answers (1)

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Bianca Perry · Answer 1

The government hand theory

Explanation:

This theory states that it is possible to run a business without government intervention for some reason, in which case it is necessary for a business to self-regulate on its own, either economically or legally. The important thing is that the company exists in such a way as to prevent the government from having to meddle in its affairs. One way to do this is to make business decisions to avoid violating any law.