One Should Be Cautious in the Interpretation, but a Summary

question 83

Multiple Choice

One should be cautious in the interpretation, but a summary of more than a dozen studies analyzing the relationship between organizational social responsibility and economic performance provides what conclusion?

• A) Corporate social involvement tends to devalue stock prices in the long run.
• B) Good economic performance allows firms to be socially responsible.
• C) There is a positive relationship between corporate social involvement and economic performance.
• D) Being socially responsible causes good economic performance.

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Definitions:

Competitive Intelligence

A formal approach to obtain information about competitors.

North American Free Trade Agreement (NAFTA)

A treaty entered into by the United States, Canada, and Mexico; it was designed to remove tariff barriers between the three countries.

General Motors (GM)

An American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts.

External Factors

Elements outside an organization that can impact its performance, including economic, social, technological, and political factors.