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CS Professional · CSR and Social Governance · CSR and Sustainable Development Goals

Kiran Pharma Ltd argues that CSR is just a compliance cost, yet it spends on community health because doing so improves its licence to operate, brand trust and long-term returns. Which characterisation of this approach is most accurate?

This is strategic CSR, where social spending is deliberately aligned with business interests such as reputation, community trust and long-term value. It differs from pure philanthropy, which expects no business return, and nothing in the facts suggests unlawful use of funds or misleading environmental claims.

  1. APure philanthropy with no business link
  2. BStrategic CSR that aligns social activity with business valueCorrect
  3. CIllegal diversion of company funds
  4. DGreenwashing

Explanation

Linking social spending to brand, licence to operate and long-term value is strategic CSR. Pure philanthropy has no business link, and nothing in the facts suggests illegality or misleading claims.

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