Final answer:
Companies invest in social responsibility by improving energy efficiency, creating greener products, reducing waste, investing in human capital, and complying with environmental laws.
Step-by-step explanation:
A company might spend money on being socially responsible through various initiatives. One way is by investing in energy efficiency and renewable energy solutions to measure and reduce emissions. Companies might also advocate for strong energy policies that support sustainability.
Further actions include designing greener and more efficient products that last longer and are free of hazardous substances. Responsible companies often look at their operations holistically, aiming to reduce environmental impacts by choosing sustainable production materials and implementing global take-back programs for their products.
Additionally, companies can contribute to social welfare by engaging in transactions that create broader benefits for society, like reducing waste and saving money for households and municipalities. Investments in human capital, like education, also represent a form of social responsibility that, beyond its private returns, offers substantial benefits to society at large.
Lastly, compliance with environmental laws, despite the significant costs, is another area where a company spends money on social responsibility, reflecting a commitment to legal and ethical standards of operating.