Which of the following statements about corporate spending on social issues and community involvement are true?

A) Corporations should spend whatever is needed to maximize society's well-being.
B) It is part of a corporation's contract with society to provide funds for the common good.
C) Most corporations today operate under the rules of socialism.
D) Managers of corporations try to show how the company's commitment to community involvement and development contribute to the corporate goals.
E) All of the above statements about corporate spending on social issues and community involvement are true.

Question

Solomon Bangura · Accepted Answer

Final Answer : D, Explanation :  Option A is not always feasible as corporations have the ultimate goal of maximizing shareholder wealth. Option B suggests a moral obligation that not all corporations may agree with. Option C is incorrect as most corporations operate under capitalism. Option D is true as corporations aim to demonstrate how their involvement in social issues can benefit the organization in terms of reputation, employee morale, and consumer loyalty. Option E is incorrect as options A, B, and C are not entirely accurate.

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