What is corporate social responsibility?

What is corporate social responsibility?

• A. Actions taken solely for increasing profits
• B. Ignoring legal and ethical standards
• C. Contributions that go beyond financial self-interest
• D. Maximizing shareholder value only

Answer: (C)

Corporate social responsibility (CSR) refers to the concept where businesses take into account their impact on society and the environment while making decisions. This goes beyond merely seeking financial profits and includes a commitment to ethical behavior, environmental sustainability, and social equity. When a company engages in CSR, it recognizes its role in contributing positively to the community and aims to make a difference through various initiatives, such as community service, environmental protection, and fair labor practices. This contrasts sharply with actions that focus solely on profits or maximizing shareholder value without consideration for wider societal implications. The choice that highlights contributions going beyond financial self-interest accurately captures the essence of CSR, which emphasizes a balanced approach to business where stakeholders, including employees, customers, communities, and the environment, are considered. This approach fosters trust and strengthens the company's reputation, ultimately benefiting the organization in the long run.

Corporate social responsibility (CSR) refers to the concept where businesses take into account their impact on society and the environment while making decisions. This goes beyond merely seeking financial profits and includes a commitment to ethical behavior, environmental sustainability, and social equity. When a company engages in CSR, it recognizes its role in contributing positively to the community and aims to make a difference through various initiatives, such as community service, environmental protection, and fair labor practices. This contrasts sharply with actions that focus solely on profits or maximizing shareholder value without consideration for wider societal implications.

The choice that highlights contributions going beyond financial self-interest accurately captures the essence of CSR, which emphasizes a balanced approach to business where stakeholders, including employees, customers, communities, and the environment, are considered. This approach fosters trust and strengthens the company's reputation, ultimately benefiting the organization in the long run.