The Business Case for Why Companies Should Act in a Socially

question 27

Multiple Choice

The business case for why companies should act in a socially responsible manner includes such reasons as it

• A)generates internal operating benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).
• B)increases the risk of reputation-damaging incidents.
• C)is not in the best interest of shareholders.
• D)can lead to decreased buyer patronage.
• E)can increase costs and reduce employee retention.

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Definitions:

Financial Market Panic

refers to a sudden and widespread fear among investors, leading to rapid selling of securities and a sharp decline in market prices.

Rate of Return

Rate of Return is a measure of the profitability of an investment, calculated as the percentage of the total amount returned in relation to the original investment made.

US Dollar

The official currency of the United States, widely used as a standard unit of currency in international finance and trade.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.