All else being equal, socially responsible firms
A) are viewed more favorably by consumers.
B) enjoy significantly higher profits.
C) often experience customer loyalty problems.
D) fail to earn sufficient profits for their owners.

Question

Quizplus · Accepted Answer

Socially responsible firms are viewed more favorably by consumers, as their actions align with consumers' values and beliefs. This can lead to increased customer loyalty and positive brand image, which can ultimately translate into higher profits. However, it is not guaranteed that socially responsible firms will enjoy significantly higher profits, as there are other factors that can impact profitability. Additionally, socially responsible firms may not always earn sufficient profits for their owners, depending on the specific business model and industry they operate in.

All Else Being Equal, Socially Responsible Firms