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ACCA Applied Knowledge · Business and Technology · Governance in business organisations

Which of the following best describes corporate social responsibility (CSR)?

CSR is a business's commitment to act in ways that benefit society and the environment, going beyond the minimum required by law. It reflects responsibility to a wide range of stakeholders rather than only shareholders, and is largely voluntary rather than statutory.

  1. AA legal requirement to maximise dividends paid to shareholders
  2. BA business's voluntary commitment to act in ways that benefit society and the environment beyond the minimum legal requirementsCorrect
  3. CA statutory obligation to publish audited accounts
  4. DA technique for reducing the corporation tax liability of a company

Explanation

CSR is generally understood as an organisation taking responsibility for its impact on society and the environment, going beyond mere legal compliance. Maximising dividends is a shareholder-focused aim, not CSR. Publishing audited accounts is a legal requirement, not a voluntary commitment.

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