Which term describes the pressures on a business to operate with ethical standards as expected by the general public?

Which term describes the pressures on a business to operate with ethical standards as expected by the general public?

• A. Ethical Objectives
• B. Corporate Social Responsibility
• C. Social License to Operate
• D. Ethical Policy

Answer: (A)

The thing being described is social license to operate. It captures the idea that a business gains or loses legitimacy based on whether it meets society’s ethical expectations. Public approval isn’t a formal permit, but ongoing acceptance from communities, customers, and regulators that allows the firm to operate peacefully and without disruption. If that approval is withdrawn through unethical behavior or lack of transparency, the business can face protests, boycotts, or tighter regulation. Internal concepts like Corporate Social Responsibility describe actions the company takes or ethical policies set in place, but they are internal tools; the social license to operate is about the external perception and ongoing public consent.

The thing being described is social license to operate. It captures the idea that a business gains or loses legitimacy based on whether it meets society’s ethical expectations. Public approval isn’t a formal permit, but ongoing acceptance from communities, customers, and regulators that allows the firm to operate peacefully and without disruption. If that approval is withdrawn through unethical behavior or lack of transparency, the business can face protests, boycotts, or tighter regulation. Internal concepts like Corporate Social Responsibility describe actions the company takes or ethical policies set in place, but they are internal tools; the social license to operate is about the external perception and ongoing public consent.