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The statement says fulfilling social objectives always reduces profit. What is the correct evaluation?

Answer and explanation

Correct answer: Wrong because social responsibility can increase trust and demand in the long run

Direct answer: B is correct. The statement that fulfilling social objectives always reduces profit is false. Social objectives mean acting responsibly toward customers, employees, suppliers, the community and the environment. Such actions may create a cost in the short term, but they can build trust, goodwill, customer loyalty and a stable supply relationship. Step by step: safe products and honest information protect customers; protected customers trust the organisation; trust can increase demand and repeat purchases; a good reputation can support profit in the long run. Option A is wrong because society and business are not always enemies. Option B correctly rejects the word “always” and explains the long-term benefit. Option C is wrong because customer safety is essential, not useless. Option D is wrong because profit remains an important organisational objective; social responsibility does not remove it. Exam cue: be careful with absolute words such as “always.”

Related tags

Social ResponsibilityLong Term ProfitTrust

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