Bachelor of General Studies (BGS) Degree Practice Exam

Supporters of corporate social responsibility often argue that it:

1. Promotes government regulation

2. Is a legal obligation

3. Discourages government regulation

4. Increases operational costs

The correct answer is: Discourages government regulation

Supporters of corporate social responsibility (CSR) argue that it encourages businesses to operate in a manner that is ethically responsible and contributes positively to society, which can alleviate the need for government intervention. By voluntarily adhering to ethical standards and making decisions that take into account social and environmental impacts, companies can build trust among stakeholders, leading to a more sustainable business model. This proactive approach can reduce the likelihood of regulatory pressures, as companies demonstrate their commitment to addressing societal concerns without external mandates. In this view, CSR acts as a mechanism for self-regulation that enhances corporate accountability and mitigates the need for stricter government oversight. Options suggesting that CSR promotes or creates legal obligations do not capture the essence of the argument; rather, supporters of CSR advocate for businesses to take initiative beyond mere compliance with the law. Similarly, while operational costs may rise with CSR initiatives, the emphasis of proponents is often on the long-term benefits and value creation, rather than the immediate cost implications.