Please Clearly Identify The Choice Made

Companies committed to environmental sustainability

Multiple Choice

make major contributions to local civic and charitable organizations.

consider the commitment to the environment as a first-order priority, commitment to employees as a second-order priority, and commitment to shareholders as a third order commitment.

believe it is essential to strike a balance between shareholder interests and the interests of stakeholders such as suppliers, customers, employees, and the communities in which they operate.

develop and market only products that are environmentally friendly.

adopt sustainable business practices that meet the needs of the present without compromising the ability to meet the needs of the future.

Which one of the following is not a part of the business case for why companies should act in a socially responsible manner?

Multiple Choice

A strong commitment to socially responsible behavior reduces the risk of reputation-damaging incidents.

The aggressive pursuit of market share, revenues, and profits always puts the company in jeopardy of violating societys social responsibility expectations.

Social responsibility strategies work to the advantage of shareholders.

Socially responsible actions yield internal benefits (particularly for employee recruiting, workforce retention, and training costs) and can improve operational efficiency.

Socially responsible actions can lead to increased buyer patronage.

In late June 2020, Crossfits founder and CEO Greg Glassman outraged customers, sponsors, trainers, and affiliated gym owners when he wrote a controversial tweet about George Floyd, comparing Floyds killing and the subsequent Black Lives Matter demonstrations to the novel coronavirus pandemic. Then, Glassman made offensive comments while on a call with Crossfit gym owners (the audio of which was leaked to BuzzFeed), including, Were not mourning for George FloydI dont think me or any of my staff are. As a result, among the intangible costs to Crossfit are:

Multiple Choice

1) increased competitive advantage; (2) lowering the legal fees to handle reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.

1) decreased buyer patronage; (2) decreasing the risk of reputation-damaging incidents; (3) pursuing internal benefits such as punishing staff for misdeeds; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.

1) increased buyer patronage; (2) lowering the legal fees to handle reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) pursuing shareholder benefits based on high correlations between CSR and stock price and other measures of financial performance.

(1) reduced buyer patronage; (2) increasing time spent to repair reputation-damaging incidents; (3) reprimands for or dismissal of the CEO; (4) pursuing a greater commitment to diversity to earn back the trust of stakeholders.

(1) increased employee morale; (2) reducing the risk of reputation-damaging incidents; (3) pursuing internal benefits such as improved efficiency and workforce retention; (4) shareholder benefits based on apparent correlations between CSR and stock price and other measures of financial performance.