Corporate Social Responsibility Practice Test 2026 – Complete Exam Prep

Ethical responsibility for businesses refers to the obligation they have to act morally and in accordance with societal expectations. This definition encompasses a broader understanding of a company's role in society beyond simply making a profit or adhering to legal requirements.

While making a profit is a fundamental aim for businesses, it doesn't encompass the ethical dimension of corporate behavior. Similarly, following laws is a basic requirement for any business and indicates compliance rather than a proactive commitment to ethical standards. Contributing to community welfare is certainly an admirable action, but it is still part of a broader ethical responsibility; it is one aspect of how businesses can fulfill their obligations to society.

The correct answer emphasizes that ethical responsibility includes not only compliance with laws but also a commitment to moral principles that align with the values and expectations of society. This means that businesses should be mindful of their impact on various stakeholders, including employees, customers, and the environment, and strive to operate in a way that is considered fair, transparent, and responsible by the community they serve.