Narrative 3-1 IBM Has a Long-Standing "Reinventing Education" Program,which Involves Intensive Research

question 146

Multiple Choice

Narrative 3-1
IBM has a long-standing "Reinventing Education" program,which involves intensive research into how educational institutions can use the fruits of new technologies to transform what they do and thereby improve education. In the process,the program is helping to shape a market of significant interest to IBM. IBM views the program as an investment rather than as a charitable contribution.
-A small manufacturer of scented candles has asked if acting socially responsible would increase its profitability. Which of the following is the most correct response?

• A)Yes. Look at the examples of Starbucks Coffee and Ben & Jerry's. 
• B)Yes. There is strong evidence of a positive relationship between social responsibility and economic performance. 
• C)No. Stakeholders do not support social responsibility if it lowers profits. 
• D)No. There is no guarantee that profitability results from social responsibility.

---

Definitions:

Incentives

Motivations or rewards that influence the actions and behaviors of individuals or organizations.

External Benefit

A positive effect or advantage that results from a transaction or activity but benefits a third party who is not directly involved in the transaction.

Social Value

The importance or worth of something to society, considering factors beyond mere economic gains, like environmental sustainability and social equity.

Private Cost

The cost that is borne by the individual who creates it, as opposed to society or others.