Long-Distance Providers Are Becoming Increasingly Concerned About Certain Activities Within

question 66

Multiple Choice

Long-distance providers are becoming increasingly concerned about certain activities within their industry. Various companies come together voluntarily to implement new standards of social responsibility that members must abide by. What seems to be the primary motivation in this case for an increased interest in social responsibility?

• A) Because corporations are creations of society, they are responsible for giving back to the communities in which they operate.
• B) These companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.
• C) These companies are using social responsibility as a means to increase their profitability, both short term and long term.
• D) Long-distance providers have started taking pride in their industry and its record for social responsibility.
• E) They feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.

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Definitions:

Allocated Costs

Expenses that have been assigned to a product, service, or department based on indirect relationships or drivers.

Business Units

Individual segments within a larger corporation that operate independently with their management team and financial objectives, often focusing on a specific product line or market.

Profit Centre

A branch or division of a company that is treated as a separate business, responsible for generating its own revenue and profits.

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, and success of an organization's activities or employees' actions.