IIA-CIA-PART1 · Question #36
Which of the following most accurately describes corporate social responsibility at an organization?
The correct answer is C. An overall commitment of the organization to improve the quality of life for not only the. Option C is correct because Corporate Social Responsibility (CSR) is defined as a broad, voluntary organizational commitment to balance profit-making with positive contributions to stakeholders - employees, communities, and society - not just shareholders. The key phrase…
Question
Which of the following most accurately describes corporate social responsibility at an organization?
Options
- AAn organizational locus on improving the overall environment, even it is to the detriment of the
- BA philosophy driven by employees that flows up to senior management and the board of directors.
- CAn overall commitment of the organization to improve the quality of life for not only the
- DA policy of ensuring that the organization is socially responsible, even if it leads to unprofitability
How the community answered
(52 responses)- A2% (1)
- B12% (6)
- C81% (42)
- D6% (3)
Explanation
Option C is correct because Corporate Social Responsibility (CSR) is defined as a broad, voluntary organizational commitment to balance profit-making with positive contributions to stakeholders - employees, communities, and society - not just shareholders. The key phrase implied in C is that quality of life improvement extends beyond the organization itself to the wider community and society.
Why the distractors fail:
- A is wrong because CSR does not accept harm to the environment as a trade-off; environmental stewardship is a core pillar of CSR, not something sacrificed for other goals.
- B is wrong because CSR is typically a top-down philosophy - driven by leadership, board mandates, and organizational strategy - not a bottom-up employee movement.
- D is wrong because CSR does not require accepting unprofitability; the dominant view (e.g., Porter & Kramer's "shared value") holds that CSR and long-term profitability are complementary, not opposing.
Memory tip: Think of CSR as the "triple bottom line" - People, Planet, Profit. Any answer that sacrifices one pillar entirely (harms the environment in A, ignores profit in D) or misidentifies the driver of CSR (employees in B rather than leadership) is wrong. CSR is always holistic and organization-wide.
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