Question

An argument against social responsibility in organizations is that: O a business often has the resources necessary to solve problems. • b, business creates problems and should therefore solve them O corporations Cors in a society O d. there is potential for conflicts of interest,

Answer 1

An argument against social responsibility in organizations is that :

D) There is potential for conflicts of interest .

Explanation : Business generally has sufficient funds to resolve social problems. They are social citizens and some of the social problems they created by their commercial operations. But all these are not the arguments against social responsibility in the organizations.

But inside in an organization there are potential for conflicts of interest of CSR, that is the main argument going against social responsibility of the organization. Potential conflicts of interests are the future or probable conflicts of interest between parties which may get started after social responsibility fulfilment by the organization . If a cigarette manufacturer performing social responsibility by developing hospital for oral or for lung cancer patients then ultimately the total sales turnover in near future will must have to get reduced .

Which of the following is a disadvantage of a strategic alliance?

C) It limits profits and control over a business.

Explanation : In international Strategic alliance foreign company can maximum allowed to participate in 49% of ownership & control and profitability over the business. Also for domestic strategic alliance growing companies are restricted up-to a fixed percentage of ownership and profitability over a business by the stable and large companies. Which finally creates potential competition .