Which of the following statements is true of the relationship between social responsibility and economic performance?
A) The costs of being socially responsible can be offset by a better product or corporate reputation.
B) Socially responsible companies are guaranteed profitability.
C) Socially responsible companies and traditional businesses do not experience the same ups and downs in economic performance.
D) There is a big trade-off between social responsibility and economic performance.

Question

Quizplus · Accepted Answer

While there may be some initial costs associated with being socially responsible, companies that prioritize social responsibility may ultimately benefit from a better reputation and increased consumer loyalty. This can result in increased sales and profitability, offsetting any initial costs. However, there is no guarantee of profitability solely based on social responsibility, and socially responsible companies still experience economic ups and downs like traditional businesses. Therefore, option B and C are incorrect. Option D is incorrect because while there may be some trade-off between social responsibility and economic performance, it is not a consistently huge trade-off.

Which of the Following Statements Is True of the Relationship