Why does the government enact laws that require companies to be accountable for the social costs linked to their products or manufacturing methods?

Show Answers

To safeguard businesses against competitionTo shield buyers from dishonest commercial tacticsTo defend the welfare of the communityTo guard companies from unreasonable consumer expectations

Explanation

Government regulations that hold firms accountable for social costs are designed primarily to protect societal interests, ensuring that businesses consider the broader impact of their activities.