A CEO of a Company Feels That He Is Only

question 49

Multiple Choice

A CEO of a company feels that he is only responsible for following the law and standard business practices. His company will most likely ________.

• A) take an obstructionist stance on social responsibility
• B) take a defensive stance on social responsibility
• C) use socialization tactics that lead to an individualized role orientation
• D) commit unethical acts

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Definitions:

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith which they believed to be in the best interest of the company.

Duty of Diligence

The obligation of a person or entity to exercise reasonable care and attention in carrying out tasks and responsibilities.

Corporate Records

Official documents that corporations are legally required to maintain, including information on business activities, financial performance, and legal obligations.

Declared Dividend

A dividend that has been announced by a company's board of directors to be paid out to shareholders on a specified date.