Social activities could be undertaken as a perquisite for management, and if so, social performance should be greater the greater are the slack resources available to managers.

Question

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This statement suggests that social activities may be seen as a form of managerial privilege, and that the availability of slack resources (i.e. excess resources that are not needed for immediate operations) may influence the extent to which social performance is emphasized by managers. If managers have more slack resources at their disposal, they may have greater capacity to invest in social activities without compromising operational efficiency or financial goals. Therefore, social performance may be expected to be greater when resources are more abundant.

Social Activities Could Be Undertaken as a Perquisite for Management