Assume that each day ten thousand children watch sesame street on public television and that watching sesame street generates a benefit of $100 per child per year. once a year, public televisions hold a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone. suppose each parent has just one child who watches sesame street. each parent has a private incentive to contribute during the pledge drive.

An important source of public scrutiny is "watchdogs." these are: the efforts of a firm's competitors, including how often the competitors attack the firm's strategies. taxpayer-supported government agencies that limit a firm's ability to compete in foreign markets. companies designated by the government to only produce products that support the government defense program. socially conscious groups that make it their mission to measure the social responsibility levels of businesses, and provide consumers with their opinions about the level of corporate responsibility of various companies.