Which of the Following Actions Is Consistent with Social Responsibility

question 1

Multiple Choice

Which of the following actions is consistent with social responsibility but is necessarily inconsistent with stockholder wealth maximization?

• A)Investing in a smokestack "scrubber" to reduce the firm's air pollution as mandated by law.
• B)Voluntarily installing expensive machinery to treat effluent discharge which currently is being dumped into a river where it is ruining the drinking water of the community where the plant is located.
• C)Investing in a smokestack filter to reduce sulphur-dioxide emissions in order to reduce the current tax being levied on the firm by the state for its pollution.
• D)Making a large corporate donation to the local community in order to fund a recreation complex that will be used by the community and the firm's employees.
• E)Each of the above actions is consistent with social responsibility and none are necessarily inconsistent with stockholder wealth maximization.

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Definitions:

Laboratory Controls

Procedures or conditions that are used in experiments to ensure that the results are due to the independent variable being tested, and not to external factors.

Correlational Method

A research strategy that involves observing the relationship between two or more variables without manipulating them.

Variables

Variables are any characteristics, numbers, or quantities that can be measured or quantified and that can vary across subjects, time, or any other dimension in a study or experiment.

Research Techniques

Various methods and tools used to conduct scientific studies and gather empirical data, including experiments, surveys, observations, and interviews.