A firm that undertakes social activities motivated by moral principles will act only when there is an opportunity for profits or when forced to act by its nonmarket environment.

Question

Quizplus · Accepted Answer

A firm motivated by moral principles will act in ways that are consistent with those principles, even if there is no opportunity for profits or external pressure to do so. Such a firm may undertake social activities as part of its core mission or values, and may prioritize the welfare of stakeholders beyond simply maximizing shareholder value.

A Firm That Undertakes Social Activities Motivated by Moral Principles