The extent of CSR of a lead firm within a global value chain should be limited to activities _______
A) that it owns.
B) that are profitable.
C) that it impacts both directly and indirectly in its decision-making.
D) that are associated with possible labour exploitation.

Question

Quizplus · Accepted Answer

This is a highly contentious issue but can be clarified through logical reasoning. A. implies a legal definition of CSR which is increasingly seen as overly restrictive. B. is unrealistic as socially irresponsible activities are just, if not more likely, to occur in loss making activities which should also be considered. D. provides an unhelpful restriction as irresponsible actions can occur in areas other than labour-related such as resource use, pollution, or fraudulent activities. The most plausible, but not universally accepted, response is C, because a lead firm is coordinating a disparate value chain, it should be aware of, and hence responsible for, all activities along that chain.

The Extent of CSR of a Lead Firm Within a Global