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:

Managers and Coworkers

The relationship dynamics and interactions between supervisory personnel (managers) and the employees (coworkers) they oversee.

Customers

Individuals or organizations that purchase goods or services from a business, playing a crucial role in the success and sustainability of the business.

Harassment

Unwanted conduct that creates an intimidating, hostile, degrading, humiliating or offensive environment for an individual.

Stakeholder Ethics

The principles and standards that guide the behavior of individuals and organizations in considering the interests of all stakeholders.