XYZ Corporation expects its managers and employees to testify at congressional hearings and appear before state legislatures to advocate policy positions on everything from taxes to activities in national parks. What risk does XYZ Corporation have because of this policy?
A) None because social responsibility involvement enhances the reputation of XYZ
B) Backlash from those who feel differently about these issues
C) Shareholder sell-offs because of the positions taken
D) Both b and c

Question

XYZ Corporation expects its managers and employees to testify at congressional hearings and appear before state legislatures to advocate policy positions on everything from taxes to activities in national parks. What risk does XYZ Corporation have because of this policy?
A) None because social responsibility involvement enhances the reputation of   XYZ
B) Backlash from those who feel differently about these issues
C) Shareholder sell-offs because of the positions taken
D) Both b and c

Quizplus · Accepted Answer

XYZ Corporation risks backlash from those who feel differently about the policy positions taken and shareholder sell-offs because some shareholders may not agree with the positions taken by the corporation, leading to a decline in stock prices. However, social responsibility involvement can enhance the reputation of XYZ Corporation.

XYZ Corporation Expects Its Managers and Employees to Testify at Congressional