Which of the Following Is an Argument Against Social Responsibility

question 118

Multiple Choice

Which of the following is an argument against social responsibility?

• A) Business has resources needed to tackle today's complex social issues.
• B) Because business is a part of our society, it cannot ignore social issues.
• C) Corporate time, money, and talent should be used to maximize profits.
• D) By helping resolve social issues, business can create a more stable environment.
• E) Socially responsible decision making by firms can prevent increased government intervention.

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Definitions:

Moral Hazard

The situation in which one party engages in risky behavior knowing that it is protected against the consequences, usually due to a contract or agreement.

Criminal Actions

Activities that are punishable by law, typically involving harm to individuals or the society at large.

Top Managers

Senior executives responsible for making strategic decisions and overseeing the overall operations of an organization.

Asymmetric Information

A situation in which one party in a transaction has more or significantly better information than the other, leading to an imbalance in the transaction.