Which of the following actions is consistent with social responsibility and is not necessarily inconsistent with stockholder wealth maximization?
A)Selling a smokestack "scrubber" required by the firm's air pollution policy that is also mandated by law.
B)Dumping effluent discharge into a river, where it ruins the drinking water of the community around the plant. The installation of machinery to treat the effluents is very expensive.
C)Investing in a smokestack filter to reduce sulphur-dioxide emissions to decrease the tax being levied on the firm by the state for pollution it produces each year.
D)Making a large corporate donation to the local community for funding a recreation complex that can be used by the firm's employees only.
E)Consider taking over the competitor's business in an attempt to establish monopoly for its product in the market.

Question

Quizplus · Accepted Answer

Investing in a smokestack filter to reduce sulfur-dioxide emissions is an action that aligns with social responsibility by reducing pollution. It also aligns with stockholder wealth maximization by potentially decreasing taxes levied for pollution, thus saving money in the long term.

Which of the Following Actions Is Consistent with Social Responsibility