The Moral Case for Why a Company Should Actively Promote

question 8

Multiple Choice

The moral case for why a company should actively promote the betterment of society and act in a manner benefitting all its stakeholders

• A) is based on the principle of treating people fairly and with respect.
• B) is based on the conviction that improving the well-being of society ranks higher in priority and is certainly nobler than making a profit and serving the interests of shareholders.
• C) boils down to "it's the right thing to do."
• D) rests on the principle that a business is duty bound to fulfill its social contract to serve the interests of all stakeholders in a business enterprise.
• E) is based on the principle that business activities lack real legitimacy and have few socially redeeming qualities unless and until a company exerts a significant and sincere effort to give something back to the community.

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Definitions:

Perfectly Competitive Market

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, where all entities are price takers.

Knowledge

Information, understanding, or skills acquired through education or experience.

Budget Constraint

The maximum range of goods and services a consumer can purchase based on their income and the cost of these products.

Budget Constraint

Represents the combinations of goods and services an individual can purchase given their income and the prices of those goods and services.