The Top Management Level at Brown Corp

question 208

Short Answer

The top management level at Brown Corp. has already publicly stated its commitment to being socially responsible. What is the next action that Brown Corp. needs to take if it wants to follow the four-step process for managing social responsibility programs?
A social audit must be conducted.
The government must identify specific things the company is doing that need to be corrected.
Make sure that support must is evident from top management.
A director of the firm's social agenda must be appointed.
A committee of top managers must develop a strategic plan for social responsibility.

---

Definitions:

Significant Influence

The ability to engage in the decisions related to the financial and operating policies of an investee without having control over those policies.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and a right to vote on corporate matters.

Dividends

Payments made to shareholders out of a company's profits.

Equity Method

This is a method in accounting where investments in external companies are initially logged at their acquisition cost, then later altered to account for the owner's share in the profits or losses of the company invested in.