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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Kestrel Foods voluntarily funds a local school and cuts packaging waste, even though no law requires this and it does not expect a direct financial return. Which view of corporate social responsibility does this behaviour best reflect?

This behaviour reflects a stakeholder view of CSR. The company accepts responsibilities to society and the environment beyond what the law requires and beyond profit maximisation, recognising that groups other than shareholders are affected by, and have legitimate interests in, its activities.

  1. AThe shareholder-only view that the business exists solely to maximise profit
  2. BA stakeholder view that the business has wider responsibilities to societyCorrect
  3. CA compliance view that the business only meets legal obligations
  4. DA short-termist view focused on quarterly earnings

Explanation

Acting beyond legal requirements for the benefit of the community and environment reflects the stakeholder view of CSR. The shareholder-only view would reject spending without financial return, and a compliance view would stop at legal minimums.

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