Why Should a Company Endeavor to Be Socially Responsible in Its

question 59

Essay

Why should a company endeavor to be socially responsible in its actions and conduct?

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Definitions:

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to total revenue.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Sustainable Growth Rate

Refers to the maximum growth rate a firm can achieve without needing to increase its financial leverage.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, represented as a percentage of the company's total earnings.