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

question 7

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% (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 a sameness in the sense of drawing on the same categories of socially responsible behavior, each company's version of being socially responsible is unique.

---

Definitions:

Output Effect

A phenomenon where changes in price level influence the quantity of goods and services produced in an economy due to the alteration in profitability of goods sold.

Price Effect

The impact on consumer demand or supply of goods due to changes in the price of those goods or related goods.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Oligopoly

A market structure characterized by a small number of firms whose decisions affect and are affected by each other.