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

Which of the following is the most likely business benefit to a company from adopting a strong CSR policy?

The most likely benefit is an enhanced reputation, which helps attract and retain customers and employees and can build investor confidence. CSR does not exempt a firm from regulation, does not guarantee lower costs, and does not replace the need for a code of ethics.

  1. AA guaranteed exemption from environmental regulation
  2. BEnhanced reputation and improved ability to attract and retain customers and employeesCorrect
  3. CAn automatic reduction in all operating costs
  4. DRemoval of the need for a code of ethics

Explanation

Good CSR can strengthen brand reputation and appeal to customers, employees and investors. It does not exempt a company from regulation, guarantee lower costs (it often adds costs), or replace a code of ethics, which supports it.

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