Senior Management at Value Products Is Attending a Corporate Retreat

question 89

Multiple Choice

Senior management at Value Products is attending a corporate retreat, and the first item for discussion is corporate social responsibility (CSR) . The group has discussed this before and then shot it down because it generally costs Value Products' shareholders in the form of reduced distributions. But the new VP, Isabella, is about to explain why she believes CSR will actually benefit the shareholders and Value Products management alike. Her team begins the presentation with a discussion of CSR, both its current definition and reconciliation of past views. Scott then discusses the importance of being a good global corporate citizen by supporting the local school system. Jessica takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally, Valentina wraps up the discussion by defining why Value Products should take legal responsibility for the firm's performance.Valentina's presentation most likely centered on taking which of the following actions?

• A)production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors
• B)obeying all laws that affect 'Value Products' operations
• C)doing the right thing regardless of what the law says
• D)supporting Scott's proposal
• E)engaging in additional behaviors and activities that society finds desirable and that the values of the business support

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Definitions:

Total Revenue

The gross income of a company, which is the sum of money generated from its goods or services sold before deducting any costs.

Annual Salary

The total amount of money earned by an employee in a year from their job before taxes and other deductions.

Production

The process that transforms scarce resources into useful goods and services.

Inputs

Resources used in the production process, including labor, capital, and materials.