What term describes a business's obligation toward the welfare and interests of the society it operates in?

The term that best describes a business's obligation toward the welfare and interests of the society in which it operates is social responsibility. This concept emphasizes that companies should not only focus on profits but also consider the impact their operations have on stakeholders, which include customers, employees, communities, and the environment. By engaging in social responsibility, businesses acknowledge their role in society and actively seek to make positive contributions, such as through sustainable practices, philanthropy, and ethical decision-making.

While corporate responsibility also relates to a company’s role, it often encompasses a broader range of policies and practices, including social, environmental, and economic responsibilities. Ethical responsibility focuses specifically on adhering to moral principles in business practices, which may be an aspect of social responsibility. Legal responsibility pertains to compliance with laws and regulations, which is a fundamental duty but does not cover the broader societal obligations that social responsibility entails.