Question

Corporate social responsibility means that a company should consider

a. the legal requirements for corporate governance.

b. its impact on the personal lives of their employees.

c. cost cutting opportunities to increase profit.

d. its services to the communities in which they are located.

Answer 1

Option 'a' is a Correct answer.

Reason:

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

Both Corporate Governance and CSR focus on the ethical practices in the business and the responsiveness of an organisation to its stakeholders and the environment in which it operates. Corporate Governance and CSR results into better image of an organisation and directly affects the performance of an organisation.

Option 'b' 'c' & 'd' are incorrect.

Reasons:

Employees are more likely to engage in cooperative behaviors towards their co worker.

Besides the potential loss of socially conscious consumers, CSR impacts a business ability to attract top talent and affects employees job satisfaction levels and retention rates. This is because employees feel working for a socially conscious employer gives them a sense of purpose.

The organization, like going out of their way to help their teammate.   CSR initiatives don't have to be a cost.These eco-efficiencies can produce both environmental and economic benefits through reductions in energy consumption, implementation of new cost-neutral building maintenance methodologies, and decreasing the cost of workspaces generally.

The companies benefit through lower operating costs, increased sales and customer loyalty, greater productivity, gaining ability to attract and keep skilled employees, getting access to more capital through more willing investors etc. CSR is the thoughtful and practical way to give back to the society.