The belief that a socially responsible company will be viewed as less risky, and therefore have higher stock value, is known as which argument for social responsibility?
A)long-run profits
B)balance of responsibility and power
C)shareholder interests
D)possession of resources
E)superiority of prevention over cures

Question

Quizplus · Accepted Answer

The shareholder interests argument posits that socially responsible actions by a company can lead to a perception of lower risk by investors, which in turn can enhance the company's stock value. This is because investors often view socially responsible companies as more sustainable and less likely to face environmental, social, and governance (ESG) related controversies that could negatively impact their financial performance.

The Belief That a Socially Responsible Company Will Be Viewed