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CS Professional · CSR and Social Governance · Impact of CSR

Ritu Beverages Ltd publicly reports its CSR activities and community outcomes every year. A fund manager says this transparency helps attract ESG-focused investors. Which impact of CSR on business does this reflect?

It reflects better access to capital and investor confidence. Regular, transparent reporting of CSR activities and outcomes improves the company's reputation and appeals to ESG-focused investors. It does not force higher dividends, waive listing obligations or shift CSR liability to shareholders.

  1. ABetter access to capital and investor confidence through improved reputation and disclosureCorrect
  2. BCompulsory increase in dividend payout
  3. CWaiver of listing obligations
  4. DTransfer of CSR liability to shareholders personally

Explanation

Transparent CSR reporting strengthens reputation and investor trust, and ESG-focused investors prefer such companies, improving access to capital. The other options have no basis in CSR law.

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