It Is Unlikely That Greater Control by Shareholders Will Lead

question 40

Multiple Choice

It is unlikely that greater control by shareholders will lead to greater corporate social responsibility because:

• A) many shareholders are motivated by profit maximization and are unlikely to approve corporate actions contrary to that end.
• B) many shareholders have access to the information necessary to closely monitor the noneconomic performance of a company.
• C) there is a definite chance that the values of "ethical" shareholders would be representative of society as a whole.
• D) shareholders will have the power to adopt resolutions binding the corporate managers.

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Definitions:

Trust

The belief in the reliability, truth, ability, or strength of someone or something, critical in personal and professional relationships.

Feedback Controls

A mechanism in systems and organizations used for adjusting operations and outputs based on differences between actual outcomes and desired outcomes.

Post-Action Controls

The mechanisms put in place to assess the outcomes and effectiveness of actions taken, ensuring alignment with planned objectives or standards.

Ongoing Operations

The continuous activities and processes that are performed by an organization to maintain its business and services.