When Tobacco Companies Sought to Hide Evidence That Cigarette Smoking

question 84

Multiple Choice

When tobacco companies sought to hide evidence that cigarette smoking causes lung cancer, they were exhibiting a(n) ________ approach to social responsibility.

• A)accommodative
• B)proactive
• C)defensive
• D)obstructionist
• E)offensive

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Definitions:

Agency Costs

The costs associated with resolving conflicts of interest between principals and agents, including monitoring and incentive expenses.

Principals

Individuals or entities that authorize agents to act on their behalf in business transactions.

Incentivizing Agents

Strategies to motivate individuals or entities acting on behalf of others or organizations towards desired behaviors or goals, often through rewards or benefits.

Agency Costs

Expenses and losses in value occurring when there is a conflict of interest between the principals (owners) and the agents (managers) of a company.