Application of Corporate Social Responsibility

question 23

Multiple Choice

Application of Corporate Social Responsibility
Kerri was confused. Her management class was focusing on social responsibility, and her assignment was to find business cases demonstrating social responsibility. She had several examples, but now she was not sure which case was an example of which concept. Her first business dealt with the tuna industry, which in response to pressure from environmentalists, had stated dolphins would no longer be caught with the tuna. Her second business dealt with a company whose primary focus was on profit maximization for its stockholders. The primary focus of this company was legal compliance and profit maximization. Her third business was in the tobacco industry that each year gives thousands of dollars to the arts. Her fourth business also dealt with the tobacco companies and the fact they were no longer advertising near local schools. Legislation had been enacted in order to prevent cigarettes from being promoted in locations where children under the age of 18 would be likely to see the advertisements.
-The fourth business is an example of a business that has

• A)social responsiveness.
• B)moral obligation.
• C)social obligation.
• D)social responsibility.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Capacity Alternatives

Different options or strategies a business may consider to adjust or increase its capacity to meet demand.

Market Acceptance

The degree to which a new product, service, or business model is embraced by potential customers and the market at large.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.