The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as a. code of ethics. b. social responsibility. c. business ethics. d. community responsibility. e. corporate ethics.

Businesses often consider their impact in the society they operate in terms of carrying out social responsibility. Social responsibility is a way companies contribute meaningfully to their host community by proving for them basic amenities , scholarships for their children and then employing members of the community.

Moreover, companies also take their host community into consideration before making any business decision that would affect them. For instance, a company that emit gas to the air or whose oil spills on the ground must make adequate provision to compensate the host community for this act. Also, any business decision that is against the culture and belief of the host must be ignored by the company in order to avoid legal issues.