ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Milton Foods donates 1% of annual profit to local community projects and encourages staff to volunteer. Which level of corporate responsibility does this activity most closely represent, in Carroll's pyramid?
This represents philanthropic responsibility in Carroll's pyramid. Donating part of profit and encouraging volunteering are voluntary contributions to the community, aimed at being a good corporate citizen. Economic, legal and ethical responsibilities cover profitability, obeying the law, and fair conduct respectively.
- AEconomic responsibility
- BLegal responsibility
- CEthical responsibility
- DPhilanthropic responsibilityCorrect
Explanation
In Carroll's pyramid, philanthropic responsibility means voluntary contributions to the community, such as donations and volunteering, to be a good corporate citizen. Economic responsibility is being profitable, legal is obeying laws, and ethical is doing what is right and fair beyond the law.
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