One Should Be Cautious in the Interpretation, but a Summary

question 57

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

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Definitions:

Conforming Goods

Goods that meet the specifications and quality standards outlined in a purchase contract.

Course of Dealing

The behavior and pattern of actions between parties that establishes a common basis for understanding their conduct in executing agreements.

Nonconforming Goods

Goods delivered under a sales contract that fail to meet the quality or specifications agreed upon by the seller and buyer.

Cure Defects

The action of rectifying or fixing flaws or deficiencies in a product, service, or legal document.