Skip to content

IAI Actuarial Core Principles · Business Finance · Corporate governance and the regulation of companies

Which of the following is the best example of a company acting on corporate social responsibility beyond its legal minimum duties?

Voluntarily cutting emissions below the legal limit and publishing a verified report is the best example, because it goes beyond legal requirements. The other options are simply compliance with laws, orders or tax obligations that the company must meet regardless.

  1. AVoluntarily reducing emissions below the legal limit and publishing an independently verified reportCorrect
  2. BPaying the statutory minimum wage required by law
  3. CFiling its annual return by the due date
  4. DPaying the tax assessed by the authorities
  5. Complying with a court order to clean up a spill

Explanation

Social responsibility in the sense tested here goes beyond mere compliance with the law. Cutting emissions below legal limits voluntarily and reporting transparently does so. The other options are legal obligations that the company must meet in any case.

Did you get it right without looking?

One question tells you little. A timed set on Corporate governance and the regulation of companies shows your real accuracy, how long you take and where you lose marks.

Practise Corporate governance and the regulation of companiesFree diagnostic mock

More Corporate governance and the regulation of companies questions