In the Context of the Davis Model of Corporate Social

question 99

Multiple Choice

In the context of the Davis model of corporate social responsibility,businesses must listen to the public to understand what can be done to improve society as a whole because businesses:

• A) have a financial obligation to solve societal issues that are outside their realm of action.
• B) form a central ethical core from which communities derive their social values.
• C) operate as a two-way open system, with open receipt of inputs from society and open disclosure of its operations to the public.
• D) have an inclination toward reducing social costs of activities, products, and services which benefit the masses.

---

Definitions:

Payback Period

The length of time required to recover the cost of an investment.

Required Rate

The minimum expected rate of return on an investment, project, or loan, often used in evaluating its viability.

Net Operating Income

A measure of a company's profitability from its core business operations, calculated by subtracting operating expenses from revenue, excluding non-operating items such as interest and taxes.

Payback Period

The length of time it takes to recover the initial investment in a project, often used to assess the risk of investments.