Why does a company act voluntarily in implementing procedures and equipment beyond the statutory requirements?
A) To avoid criminal penalties if there is ever a misstep
B) For purposes of good relations with regulators and community
C) To maximize shareholder value over the long term
D) Both b and c
E) a, b and c

Question

Quizplus · Accepted Answer

A company may voluntarily implement procedures and equipment beyond the statutory requirements for various reasons. One reason could be to maintain good relations with regulators and the community, which can help avoid negative publicity and potential lawsuits. Another reason could be to maximize shareholder value over the long term by avoiding costly fines and reducing the risk of accidents or environmental disasters that could harm the company's reputation and finances. Therefore, the best choice is D, which states that a company may act voluntarily to achieve both of these goals.

Why Does a Company Act Voluntarily in Implementing Procedures and Equipment