Which of the Following Actions Is Consistent with Social Responsibility

question 20

Multiple Choice

Which of the following actions is consistent with social responsibility and is not necessarily inconsistent with stockholder wealth maximization?

• A)Selling a smokestack "scrubber" required by the firm's air pollution policy that is also 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 to decrease the tax being levied on the firm by the state for pollution it produces each year.
• D)Making a large corporate donation to the local community for funding a recreation complex that can be used by the firm's employees only.
• E)Consider taking over the competitor's business in an attempt to establish monopoly for its product in the market.

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Definitions:

CRM System

Customer Relationship Management system; a technology for managing all your company's relationships and interactions with customers and potential customers.

Knowledge Management

The process of capturing, distributing, and effectively using knowledge within an organization.

Virtual Office

A service that provides a business with a physical address and office-related services without the need for a dedicated physical space.

Efficient

Achieving maximum productivity with minimum wasted effort or expense, often relating to the effective operation of a process or system.