Which of the following statements comes closest to expressing the idea of CSR?
A)The business of business is business.
B)The social responsibility of business is to increase its profits.
C) The purpose of a firm is to serve as a vehicle for coordinating stakeholder interests.
D) If social welfare rather than profit maximization is the focus of firms, they will become socialist organizations.

Question

Which of the following statements comes closest to expressing the idea of CSR?
A)​The business of business is business.
B)​The social responsibility of business is to increase its profits.
C) ​The purpose of a firm is to serve as a vehicle for coordinating stakeholder interests.
D) ​If social welfare rather than profit maximization is the focus of firms, they will become socialist organizations.

Quizplus · Accepted Answer

CSR (Corporate Social Responsibility) refers to a company's responsibility to consider the impact of its activities on society, the environment, and its stakeholders, beyond its financial obligations to shareholders. Choice C best expresses this idea by suggesting that a firm's purpose should be to coordinate the interests of different stakeholders, rather than only focus on profits. Choice A and B prioritize profit maximization over social responsibility, while choice D equates social welfare with socialism, which is not necessarily the case.

Which of the Following Statements Comes Closest to Expressing the Idea