A firm that operates ethically but only cares for its closest stakeholders is considered what?

The concept presented in this question revolves around the balance between ethical conduct and social responsibility in a business context. When a firm operates ethically, it means it adheres to moral principles and standards in its actions and decisions. However, if it only prioritizes the interests of its closest stakeholders, such as shareholders or employees, over a broader understanding of social responsibility, it is not fully living up to the expectations of being socially responsible.

Social responsibility implies a commitment to consider the wider impact of business decisions on various stakeholders, including the community, environment, and society at large. A firm that engages in ethical practices yet focuses solely on its closest stakeholders falls short of this broader social responsibility. Therefore, this firm's ethical conduct is commendable, but its lack of concern for a wider range of stakeholders renders it socially irresponsible.

In this scenario, while the firm's ethical actions support its integrity and reputation, the limited scope of its concern indicates that it does not fully embrace the principles of social responsibility that would benefit a broader constituency.