The classical view of organizational social responsibility is that management's only social responsibility is to maximize profits
Indicate whether the statement is true or false.
Answer: TRUE
Explanation: The classical view is hard to argue with. If a profit-making organization's goal is to make money for the stockholders, any activity that fails to maximize profits can be seen as "cheating" the stockholders.
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In Ironite Products v. Samuels, where a major shareholder (Samuels) of Ironite sued, contending the bylaws had been violated, the appeals court held that:
a. the directors committed fraud and would be removed from the board and a new board would be elected under court supervision b. while there was no fraud, the directors did not follow the bylaws properly, so the changes made to the corporation would have to be reconsidered c. the bylaws had been violated, so Samuels was due full fair market value of his shares d. the directors violated their duty to the corporation so would be removed from control and Samuels would take control of the company e. none of the other choices
True or False The minimax regret criterion specifies selection of the alternative with the lowest maximum regret
Indicate whether the statement is true or false