Select the statements below which correctly describe the relationship between a

Question

Select the statements below which correctly describe the relationship between a company and the community within which it operates.(Select all that apply.)

A. If the firm pollutes local streams or destroys the quality of life through noise pollution or other types of pollution, the local community may sue the company for its damages and the best local workforce members may choose not to work for the company.

B. If a company fails to maintain a good relationship with the community, employees may not be loyal to the company causing high turnover and increased personnel costs for recruiting and training.

C. Maintaining a good working relationship with the surrounding community is a good business practice.

D. A good community relationship is embedded in the goal of maximizing current share price or the equity value of the company.

E. If a company abuses local facilities such as roads, and in general does not participate in the economic advancement of the local community, facilities such as roads and utilities may not be repaired or modernized by the local community impacting the company's ability to produce a profit.

Explanation / Answer

Select the statements below which correctly describe the relationship between a company and the community within which it operates.

ANSWER : ALL ARE CORRECT

Company has objective of maximising the price of shareholders but it can not be at the expense of hurting the society. Under corporate governance & ethical considertaions, all above statements are correct that company has a responsibility to take care of society, employees, facilities provided to them

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