ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following best describes corporate social responsibility (CSR)?
CSR means a business voluntarily considers its impact on society and the environment and acts responsibly beyond its minimum legal duties. It is not a compulsory charitable distribution or a dividend calculation, but a broader approach to how the business operates and treats its stakeholders.
- AA business voluntarily taking account of its impact on society and the environment beyond its legal minimum obligationsCorrect
- BA legal requirement for companies to distribute a fixed share of profit to charity
- CA method of calculating the dividend payable to shareholders
Explanation
CSR is the idea that a business acts responsibly towards society and the environment, going beyond what the law strictly requires. It is not a fixed legal charity payment, and it is not a dividend calculation.
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