"An organization's social power is also equivalent to its social responsibility." What does this mean? For example, a customer eats a meal at a restaurant, is immediately hospitalized and later dies of complications from salmonella poisoning. Which organization will be held more "Socially" responsible, a local cafe in a rural Oklahoma town, or a high end, franchised restauraunt? The family will file legal actions; the cafe has limited liability insurance and will be forced into bankruptcy, probably losing personal assets; the multi-million dollar restaurant franchise will be protected under the corporate umbrella, settle the claim out of court, and lose zero personal assets.

Address the following questions in complete sentences. (One paragraph).

1. Is Social Responsiblity more prevalent in a capitalistic, communistic or socialistic economy? Explain.

2. How do small businesses, such as the cafe in this example, protect themselves from liability? Explain.

3. In your opinion, what is the "Socially" correct thing to do from the stand point of both the cafe and the franchise? Explain.