A firm is said to have good corporate social performance when
A) stockholders invest in socially responsible causes.
B) charitable deductions are automatically deducted from pay without the consent of employees.
C) the company has not been convicted of ethical violations for five consecutive years.
D) stakeholders are satisfied with its level of social responsibility.

Question

Quizplus · Accepted Answer

Good corporate social performance is measured by the level of social responsibility demonstrated by a company towards its stakeholders. Stakeholders include employees, customers, suppliers, communities, and investors. When stakeholders are satisfied with the company's social performance, it is indicative of the company's success in meeting its social responsibilities. Choices A and B do not address the overall performance of the company with regards to social responsibility, and choice C only refers to legal violations and does not take into account the company's overall social impact.

A Firm Is Said to Have Good Corporate Social Performance