A list of "watchdogs" (including customers, socially conscious investors, and environmentalists) monitor how well firms enforce their ethical and social responsibility policies.

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The statement is true. Watchdogs such as customers, socially conscious investors, and environmentalists keep a check on how well firms enforce their ethical and social responsibility policies.

A List of "Watchdogs" (Including Customers, Socially Conscious Investors, and Environmentalists)