Which of the Following Actions Is/are Consistent with the "Maximizing

question 73

Multiple Choice

Which of the following actions is/are consistent with the "maximizing profits" theory of the social responsibility of business?

• A) raising wages because it is expected to lower employee turnover and long-term overall compensation expenses
• B) raising wages because it is believed that workers are underpaid relative to the industry average and that employee relations would be improved even though overall compensation expense will increase
• C) raising wages to avoid a strike that would cost more than the increased costs of the wage increase
• D) raising wages because it is expected to lower employee turnover and long-term overall compensation expenses, and raising wages to avoid a strike that would cost more than the increased costs of the wage increase
• E) raising wages because it is expected to lower employee turnover and long-term overall compensation expenses, raising wages because it is believed that workers are underpaid relative to the industry average and that employee relations would be improved even though overall compensation expense will increase, and raising wages to avoid a strike that would cost more than the increased costs of the wage increase

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Definitions:

Coercive Power

Coercive Power is the ability to control others through threats or punishment, often used in a negative context to compel obedience.

Negative Reinforcement

Negative Reinforcement is a behavioral concept where removing an unwanted stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Legitimate Power

Legitimate Power is the authority that a person or organization has that is viewed as rightfully held, often given by a higher authority or institution.

Reward Power

The capability of influencing others’ behavior by offering them something desirable as a means of motivation or incentive.