ITPEC IP April 2022 Question 69
Retail company A is teaching the general distribution process for food products in an easily understandable manner at elementary schools near the company’s distribution center. Which of the following is an idea behind these activities by company A?
Explanation
CSR — teaching local children about food distribution is a contribution to the community beyond making a profit, which is corporate social responsibility.
CSR (Corporate Social Responsibility) is the idea that a company, as a member of society, answers to all its stakeholders: it contributes to the local community, protects the environment, complies with laws and discloses information. Company A uses its own know-how to educate children near its distribution center, a social contribution activity.
Answer (a)
Why not others:
- •(b) Alliance — a cooperative tie-up between companies to pursue shared business goals; no partner company is involved here
- •(c) Core competence — a company's distinctive strength that competitors cannot easily imitate; the lessons use its knowledge, but the idea behind them is contributing to society, not competing
- •(d) Corporate governance — the mechanism by which shareholders and the board monitor and direct management
Key rule: Activities for society and local communities that go beyond the company's business interest point to CSR; governance is about overseeing management.
Corporate Activities · AI-written, may contain errors
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