Explain the Concept of CSR and How It Can Have

question 28

Essay

Explain the concept of CSR and how it can have positive long-term benefits for both a company and society.

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Definitions:

Common Equity

The portion of a company's equity that is held by common shareholders, represented by common stock.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue.

Taxes

Compulsory financial charges imposed by a government on individuals, entities, or transactions to fund public expenditures.

Basic Earning Power

An indicator of a company's profitability from operations, expressed as EBIT (Earnings Before Interest and Taxes) divided by total assets.