Which of the Following Actions Is Consistent with Social Responsibility

question 57

Multiple Choice

Which of the following actions is consistent with social responsibility but is not necessarily inconsistent with stockholder wealth maximization?

• A) Selling a smokestack "scrubber" to follow the firm's air pollution policy to overlook conditions mandated by law.
• B) Dumping effluent discharge into a river, where it ruins the drinking water of the community around the plant. The installation of machinery to treat the effluents is very expensive.
• C) Investing in a smokestack filter to reduce sulphur-dioxide emissions in order to reduce the current tax being levied on the firm by the state for its pollution.
• D) Making a large corporate donation to the local community in order to fund a recreation complex that will be used by the firm's employees only.
• E) Consider buying out the competitor's business in an attempt to establish monopoly for its product in the market.

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Definitions:

Dockworker

An individual employed at a port or harbor to load, unload, secure, and transfer goods or materials between ships and dockside storage areas.

Plantation Owner

An individual who owns a large farm or estate, traditionally employing laborers to grow cash crops.