Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which of the following actions can help build a company's positive image?

1. Exclusively hiring local employees

2. Donating to local non-profit organizations

3. Reducing advertising expenses

4. Focusing strictly on profit margins

The correct answer is: Donating to local non-profit organizations

Donating to local non-profit organizations is a powerful way to build a company's positive image. This action demonstrates corporate social responsibility, showing that the organization cares about the community it operates in. By supporting local causes, the company not only contributes to the welfare of the area but also fosters goodwill among residents and stakeholders. Such charitable actions can enhance relationships with customers, attract positive media attention, and encourage employee pride and retention. In contrast, exclusively hiring local employees may not necessarily influence the broader public perception of the company's image as much as charitable contributions, as it could be perceived more as a practical business decision rather than a philanthropic one. Reducing advertising expenses does not inherently improve a company's image; it may even lessen visibility and outreach efforts. Focusing strictly on profit margins prioritizes financial gain over social responsibility, which can lead to reputational damage if the public perceives the company as greedy or uncaring. Thus, donating to local non-profit organizations stands out as the most impactful action for enhancing a company's image.