Question

The CEO of TRA Corp. has stated publicly that his company will do everything that is legally required of it, but it will not contribute to charitable causes. TRA Corp.'s position is consistent with which stance to social responsibility?

Select one:

a. Proactive

b. Non-charitable

c. Obstructionist

d. Accommodative

e. Defensive

Answer 1

Solution:

Option B "Non charitable"is the correct answer.

Explanation:

Corporate social responsibility is a concept where organisation which generate profit from the society and use resources from society must return back something to society. In other words companies are expected to invest for betterment of society.

In the present case

TRA Corp. Is ready to undertake all compliance as per law but not at it's own will. This mean if social responsibility expenditure become legally binding on the company then TRA Corp have no objection to that and will comply with required norm.

This mean TRA corp stance to social responsibility is non charitable.

Note:

1. Pro active stance mean where company contribute to society from their own profit due to their own willingness even not required by law this may be done to construct a good brand image.

2. Obstructionists is a behavior where the corporation is hindering the process of social responsibility. In present case TRA is only not contributing at their part but does not create any obstruction in other corporations way to social responsibility.

3. Accommodative stance mean where corporation is willing to get adjusted with the need of time but CEO of TRA is having strong view against social responsibility.

4. Defensive stance mean where company defend the concept of social responsibility and encourage other to contribute. This is also not the case of TRA corp.