Question

Studies have found a direct link between social responsibility and blank in business.A. blank profitabilityB. blank ethicsC. blank declining stock pricesD. blank happiness of stakeholdersE. blank global warming

Answer 1

Answer:

A) profitability

Explanation:

The main advantage of being a socially responsible business is that your company's image improves as well as your brand value.

Social responsibility increases profits because it promotes higher sales, boosts the company's image and increases customer loyalty.

One of the most famous and recognized studies that supports the positive effects of social responsibility was Corporate citizenship: Profiting from a sustainable business published by the Economist Intelligence Unit in 2008. Several other studies also show the same relationship, but the most relevant one was the Economist's report (N° 1 magazine in the business world).

Answer 2

Answer:

The correct answer is letter "A": profitability.

Explanation:

Profitability is the metric that represents the ability a company has to make a profit compared to the corporation's size. An organization can make profits but not necessarily be profitable since the revenue could be minimal compared to the operations of the business.

Besides, firms must consider the impact of their operations on their immediate surrounding environment. There must be a balance between the efforts a company directs to keep its profitability at a reasonable level taking care of the atmosphere, training employees on ethical behavior inside and outside the frame of work, and engaging charitable events for the most in-need.