The Essence of Socially Responsible Business Behavior Is That a Company

question 28

Multiple Choice

The essence of socially responsible business behavior is that a company:

• A) should balance strategic actions to benefit shareholders against the duty to be a good corporate citizen.
• B) undertake actions that add value to shareholders.
• C) respect societal expectations that shareholders should be rewarded for providing risk capital.
• D) should strive to make the company a great place to work.
• E) all of these make sense because without shareholders and worker commitment there is no need for social responsibility.

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Definitions:

Defensive Medicine

The practice by healthcare providers of ordering tests, treatments, or procedures to protect themselves from potential malpractice lawsuits, rather than to benefit the patient.

Overconsumption

The excessive use of resources or consumption of goods beyond what is sustainable or environmentally sound.

Economic Growth

An increase in a country's output of goods and services over time, often measured by changes in real GDP.

Allocative Inefficiency

A situation where resources are not distributed optimally, resulting in lost potential for producing welfare or value.