ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following is the strongest argument in favour of a company adopting a CSR policy?
The strongest argument is that CSR can enhance the company's reputation and customer loyalty, which supports long-term performance. It does not guarantee lower tax and it cannot replace compliance with laws and regulations.
- AIt guarantees that the company will pay less tax
- BIt can enhance reputation and customer loyalty, supporting long-term performanceCorrect
- CIt removes the need to comply with regulation
Explanation
CSR can improve brand image, attract customers and employees and reduce risk, which supports long-term success. It does not reduce tax by guarantee and never replaces legal compliance.
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