The Economic Model
According to the traditional concept of business, a firm exists to produce quality goods and services, earn a reasonable profit, and provide jobs. In line with this concept, the economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs.
To the manager who adopts this traditional attitude, social responsibility is someone else’s job. After all, stockholders invest in a corporation to earn a return on their investment.
Profitable firms pay federal, state, and local taxes that are used to meet the needs of society. Thus, managers who concentrate on profit believe that they fulfill their social responsibility indirectly through the taxes paid by their firms.