Which of the Following Statements Is True About Corporate Social

question 87

Multiple Choice

Which of the following statements is true about corporate social responsibility?

• A) It is the managerial obligation to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.
• B) It is the managerial obligation to cater to the needs of the stockholders, while abiding by the laws of the society.
• C) It is the managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization.
• D) It is the managerial obligation to abide to societal laws when pursuing organizational goals.
• E) It is the managerial obligation to ensure ethical decision-making in an organization to benefit its customers.

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Definitions:

M.B.A.s

Masters of Business Administration, a graduate degree focused on business management, covering areas such as accounting, finance, marketing, and operations management.

Economics

The social science concerned with the production, distribution, and consumption of goods and services.

Sociology

The study of the development, structure, and functioning of human society.

Time

A dimension in which events can occur in sequence from the past through the present to the future, also a critical element in economic models affecting production, consumption, and investments.