Question

Which of the following statements regarding CSR reporting is true?

a.CSR and sustainability information provides important feedback to guide a company's strategic and operational goals regarding eco-efficiency measures.

b.CSR and sustainability reporting are helpful only to small companies with relatively simple operating structures and processes.

c.CSR reporting and feedback may help a company increase revenues and control costs but it rarely helps with efficient allocation of scarce resources.

d.CSR reporting rarely provides feedback that is helpful in guiding a company's strategic and operational decision making.

Answer 1

There is no specific definition of CSR it may be termed as corporate responsibility or ethics, it basically involves integrating the social, environmental and economic issues into their values and cultureand conduct business practices in a transparent and accountable way so that it creates wealth not only for the company but also for the society as a whole.

The option that CSR and sustainability reporting are helpful only to small companies with relatively simple operating structures and processes is not valid as the CSR is not only helpful for small but also to all types of company which operates in the society and uses its resources for the development. It helps all type of organisation irrespective of its size, structures or pproceses.

.CSR reporting and feedback may help a company increase revenues and control costs but it rarely helps with efficient allocation of scarce resources, this statement is also not valid as the CSR aims at the operations through which the wealth in a society is maintained it aims at optimum utilisation of the resources and capacity so as to eliminate wastages by efficient allocation of scarce resources.

Further it is also invalid that CSR reporting rarely provides feedback that is helpful in guiding a company's strategic and operational decision making, but it keeps the management to the edge and attentive to make the decesions in the best interest of the company and society as well.

The CSR and sustainability information provides important feedback to guide a company's strategic and operational goals regarding eco-efficiency measures, this is the correct option as it is the goal of the CSR to use and operate in a manner which is most beneficial to the corporation and the society as a whole.

Thus the correct option is --------------A.