In which scenario can being socially responsible be a good strategy to achieve the goal of wealth maximization?
A) When managers take a longterm perspective.
B) When managers are evaluated on the basis of performance of current period.
C) When manager's take a shortterm perspective to achieve wealth maximization.
D) When being socially responsible is mandated by law.

Question

In which scenario can being socially responsible be a good strategy to achieve the goal of wealth maximization?
A) When managers take a long­term perspective.
B) When managers are evaluated on the basis of performance of current period.
C) When manager's take a short­term perspective to achieve wealth maximization.
D) When being socially responsible is mandated by law.

Quizplus · Accepted Answer

Taking a long-term perspective and being socially responsible can enhance a company's reputation, encourage customer loyalty, attract socially responsible investors, and reduce risks associated with negative social or environmental impacts. These factors can ultimately lead to increased profitability and wealth maximization.

In Which Scenario Can Being Socially Responsible Be a Good