Bachelor of General Studies (BGS) Degree Practice Exam

What goal does Corporate Social Responsibility emphasize for companies?

1. Minimizing operational costs

2. Balancing profit with positive social impact

3. Maximizing shareholder dividends

4. Limiting employee engagement

The correct answer is: Balancing profit with positive social impact

Corporate Social Responsibility (CSR) emphasizes the importance of balancing profit with a positive social impact, which is reflected in the chosen answer. The essence of CSR is about companies taking responsibility not just for their economic outcomes but also for the effects of their operations on social, environmental, and ethical dimensions. This involves actively engaging in practices that contribute to the welfare of the community and the environment, alongside achieving financial success. This approach recognizes that businesses do not operate in a vacuum and that their activities can have significant repercussions on society and the environment. By focusing on this balance, companies can build trust with stakeholders, including consumers, employees, and investors, which can lead to long-term sustainability and profitability. In contrast, the other options represent narrower approaches that do not encompass the broader implications of CSR. Focusing solely on minimizing operational costs or maximizing shareholder dividends overlooks the necessity of considering social responsibilities. Similarly, limiting employee engagement contradicts the principles of CSR, which advocate for inclusive corporate cultures that value employee contributions to social initiatives.