Because socially desirable goals can hinder profitability in many instances, managers should not try to operate under the assumption of wealth maximization.

Question

Quizplus · Accepted Answer

Managers should always strive to maximize profitability, but this does not mean they should ignore social responsibility. In fact, many companies have found that investing in social initiatives actually enhances their profitability in the long term, as customers and stakeholders become more loyal and engaged. It is possible to balance profitability with social responsibility, so managers should not dismiss socially desirable goals altogether.

Because Socially Desirable Goals Can Hinder Profitability in Many Instances