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ACCA Applied Knowledge · Business and Technology · Social and demographic factors

Which of the following is the best example of a company taking a proactive, rather than reactive, approach to social responsibility?

Setting its own carbon targets and publishing progress before regulation demands it is proactive. The firm anticipates stakeholder expectations and acts first, whereas withdrawing products after exposure, paying fines or adding warnings after a court ruling are responses to external pressure.

  1. ASetting its own carbon reduction targets and publishing progress before any regulation requires itCorrect
  2. BWithdrawing a product after a media exposé of its harmful effects
  3. CPaying a fine imposed by a regulator for pollution
  4. DAdding safety warnings only after a court ruling requires them

Explanation

A proactive approach anticipates expectations and acts before pressure arises, as in setting and reporting its own targets. The other options respond to media, regulators or courts after the event, so they are reactive.

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