Raising wages because it is expected to lower employee


Maximizing profits theory

Which of the following actions is consistent with the maximizing profits theory of the social responsibility of business?

a. raising wages because it is expected to lower employee turnover and long term overall compensation expenses

b. raising wages because it is believed that workeres are underpaid relative to the industry average and that employee relations will be improved even though overall compensation expenses will increase

c. raising wages to avoid a strike that would cost more thatn the increased costs of the wage increase.

d. A and C only

e. A, B and C

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