ITPEC IP October 2022 Question 66
Which of the following is a concept that forms the basis of corporate activities and perceives and tackles social issues such as contribution to society and protection of the global environment, rather than simply pursues profit?
Explanation
CSR — Corporate Social Responsibility: a company takes on social issues such as contributing to society and protecting the environment, not only the pursuit of profit.
Under CSR a company acts as a member of society and considers all its stakeholders (customers, employees, shareholders, local communities, the environment). Typical activities are environmental protection, social contribution, compliance, fair trade and disclosure of information, often reported in a CSR or sustainability report.
Answer (b)
Why not others:
- •(a) BCP — the business continuity plan for keeping critical business running through a disaster or other disruption
- •(c) M&A — mergers and acquisitions, combining with or buying other companies for growth
- •(d) MBO — management by objectives, where staff set their own goals and are evaluated against them (or a management buyout, where managers buy their own company); neither is about social responsibility
Key rule: CSR = responsibility to society and all stakeholders beyond profit; it is often confused with compliance, which is only the part about obeying laws and rules.
Corporate Activities · AI-written, may contain errors
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