Which of the Following Statements Regarding a Company's Social Responsibility

question 40

Multiple Choice

Which of the following statements regarding a company's social responsibility and sustainability strategy is FALSE?

• A) A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5 percent (or more)of pretax profits on social responsibility initiatives.
• B) Social responsibility strategies that have the effect of both providing valuable social benefits and fulfilling customer needs in a superior fashion can lead to competitive advantage.
• C) A few companies have integrated social responsibility and/or environmental sustainability objectives into their missions and overall performance targets.They view social performance and environmental metrics as an essential component of judging the company's overall future performance.
• D) Unless a company's social responsibility initiatives become part of the way it operates its business every day,the initiatives are unlikely to be fully effective.
• E) While the strategies and actions of all socially responsible companies have sameness in the sense of drawing on the same categories of socially responsible behavior,each company's version of being socially responsible is unique.

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Definitions:

Shareholder's Derivative Suit

A legal action initiated by a shareholder on behalf of the corporation against a third party, often the corporation's executives or directors, for mismanagement or fraud.

Corporate Directors

Individuals elected by shareholders to oversee the management of a corporation and ensure that it is being run in accordance with their interests.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, carrying on business, incurring liabilities, and suing or being sued.

Cash Tender Offer

A type of takeover in which the aggressor corporation offers to pay the target shareholders cash for their stock.