In the context of business, how do the terms 'business ethics' and 'social responsibility' differ from each other?

• A. Business ethics and social responsibility are interchangeable terms that both refer to legal compliance in business.
• B. Business ethics refers to the moral principles guiding individual behavior in business, while social responsibility focuses on a company's obligations to society as a whole.
• C. Business ethics focuses on maximizing profits, while social responsibility focuses on minimizing costs.
• D. Business ethics is concerned only with environmental issues, while social responsibility deals with employee relations.

Answer: (B)

Verified step by step guidance

1. Step 1: Begin by understanding the definitions of 'business ethics' and 'social responsibility' in the context of business. Business ethics refers to the moral principles that guide individual behavior and decision-making within a business setting. Social responsibility, on the other hand, pertains to a company's obligations to society, including environmental, social, and economic considerations.
2. Step 2: Recognize that business ethics is primarily concerned with the conduct of individuals or groups within the business, focusing on what is morally right or wrong. This includes honesty, integrity, fairness, and adherence to ethical standards.
3. Step 3: Understand that social responsibility extends beyond individual behavior and focuses on the broader impact of the company's actions on society. This includes initiatives like sustainability, community engagement, and ethical labor practices.
4. Step 4: Note the distinction between the two concepts: Business ethics is about guiding principles for behavior within the business, while social responsibility is about the company's role and accountability to society as a whole.
5. Step 5: Avoid misconceptions such as equating business ethics solely with environmental issues or assuming that social responsibility is only about minimizing costs. Both concepts have broader implications and are not interchangeable terms.