Question

Businesses must face social issues because:

a. It is the right thing to do
b. They can affect profits
c. The U.S. Constitution requires them to do so
d. None of the above

Answer 1

Answer:

The correct answer is letter "B": They can affect profits.

Explanation:

The external environment of a company plays a key role in determining how successful a company could be. Social issues such as unemployment or economic deprivation, for instance, influence employees' behavior affecting the firm's production and efficiency. Thus, the profits of the organization are compromised if managers do not pay sufficient attention to the social issues of the community that surrounds the firm.