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Those who oppose corporate social responsibility believe that

(A) businesses who are socially responsible will earn more
(B) it is using investors' money in ways they did not intend
(C) benevolence is the highest virtue
(D) businesses cannot succeed in societies that fail

User Tegancp
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1 Answer

6 votes

Final Answer:

Opponents of corporate social responsibility argue that businesses may misuse investors' money for activities not aligned with the primary goal of profit generation, conflicting with the shareholders' intended use of funds. This perspective underscores the importance of prioritizing shareholder value over social initiatives.

Thus the correct option is (B) it is using investors' money in ways they did not intend.

Step-by-step explanation:

Corporate social responsibility (CSR) opponents argue that engaging in socially responsible activities, such as philanthropy or environmental initiatives, may divert resources in ways unintended by investors. In essence, the contention is that businesses should prioritize maximizing shareholder value, and any allocation of funds towards social causes could conflict with the primary goal of profit generation.

The crux of this opposition lies in the belief that a company's primary responsibility is to its shareholders, and any deviation from profit-maximizing activities could potentially undermine the financial returns expected by investors.

Opponents often highlight fiduciary duty, contending that companies should use investors' money solely to enhance shareholder wealth. From a financial perspective, detractors of CSR argue that funds directed toward social initiatives might yield uncertain or intangible returns, making it challenging to justify these expenses to shareholders solely focused on financial gains.

In summary, opponents of corporate social responsibility, as reflected in option (B), emphasize concerns about the utilization of investors' funds for activities beyond profit generation. The debate centers on the balance between social responsibility and shareholder value, with critics asserting that businesses should refrain from allocating resources to causes that may not align with the financial interests initially intended by investors.

Therefore, the correct option is (B) it is using investors' money in ways they did not intend.

User Justin Self
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