Bachelor of General Studies (BGS) Degree Practice Exam

How do companies demonstrate global corporate citizenship?

1. By focusing solely on profit

2. Both finding opportunities that serve society and financial performance

3. By avoiding financial risks

4. By restricting their operations to local markets

The correct answer is: Both finding opportunities that serve society and financial performance

Companies demonstrate global corporate citizenship by integrating social responsibility into their business model, which includes both serving the broader society and achieving financial performance. This approach reflects an understanding that businesses operate within larger social and economic systems and that their success is interconnected with community well-being and global challenges. Focusing solely on profit neglects the significant role that companies can play in addressing societal issues, thereby limiting their impact as responsible corporate citizens. Similarly, avoiding financial risks does not inherently align with the principles of global corporate citizenship, as it may prevent companies from engaging in socially beneficial initiatives that carry some level of risk. Restricting operations to local markets contradicts the very essence of global citizenship, which emphasizes the importance of contributing positively to communities on a worldwide scale. In contrast, a balanced strategy that identifies opportunities to serve society while also considering financial sustainability reflects a comprehensive approach to being a responsible global corporate citizen, enabling companies to thrive while contributing to societal good.