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

Which of the following is the most likely benefit to a business of publishing a corporate social responsibility report that reflects society's changing attitudes?

The most likely benefit is an enhanced reputation with customers, employees and investors. Publishing a social responsibility report shows the business responds to changing social attitudes, but it does not guarantee profit, remove legal obligations or replace internal controls.

  1. AEnhanced reputation with customers, employees and investorsCorrect
  2. BA guaranteed increase in annual profit
  3. CExemption from all environmental legislation
  4. DRemoval of the need for internal controls

Explanation

Reporting on social responsibility can improve reputation and relationships with stakeholders. It cannot guarantee profit, exempt a firm from law or replace internal controls, so those options are wrong.

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