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A company adopts clean fuel, but its production cost increases slightly. What is the correct conclusion regarding its social objective?

Answer and explanation

Correct answer: It strengthens the social objective

The governing concept is that management has social objectives in addition to organisational and personal objectives. Protecting the environment by adopting cleaner fuel benefits society, reduces pollution, and supports public health. A small rise in production cost does not by itself make the decision wrong; management must often balance short-term cost with long-term social welfare and sustainable operations. Therefore, option A is correct because the action directly demonstrates concern for the community and environment. Option B is unrelated to employee satisfaction or individual development, option C refers only to career advancement, and option D incorrectly assumes deception when the stated action is environmentally responsible. The case therefore shows a socially responsible managerial choice.

Related tags

Social ObjectiveEnvironmental ResponsibilityClean FuelObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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