By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth maximization. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments?
A) Corporate resources should be devoted to maximizing profits, not to solving society's problems.
B) Individual businesses should not be responsible for solving problems that affect all of society.
C) Socially responsible actions by business firms increase the role of government in business.
D) Businesses are ill-equipped to handle today's complex social issues.
E) Social responsibility promotes environmental stability and long-run profitability.

Question

Quizplus · Accepted Answer

The fact that McDonald's is actively involved in improving societal conditions through the establishment of Ronald McDonald Houses suggests that the corporation is responsive to the argument that social responsibility promotes environmental stability and long-run profitability. This implies that businesses can derive benefits from engaging in socially responsible actions, and that these actions are not necessarily at odds with shareholder wealth maximization.

By Establishing Ronald McDonald Houses, Temporary Lodging for Individuals with Seriously