Which of the Following Statements Regarding a Company's CSR and Sustainability

question 27

Multiple Choice

Which of the following statements regarding a company's CSR and sustainability strategies is FALSE?

• A) A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5 percent (or more) of pretax profits on social responsibility initiatives.
• B) Corporate social agendas that address generic social issues may help boost a company's reputation but are unlikely to improve its competitive strength in the marketplace.
• C) Cost savings and improved profitability can be drivers of corporate sustainability strategies.
• D) Social responsibility strategies linked to a company's customer value proposition or key value chain activities may help build competitive advantage.
• E) While the strategies and actions of all socially responsible companies have sameness in the sense of drawing on the same categories of socially responsible behavior, each company's version of being socially responsible is unique.

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Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial information of a parent company and its subsidiaries as if they were a single entity.

Parent

A term used to refer to a company that owns more than half of another company, making the latter a subsidiary.

Subsidiary Companies

These are companies that are controlled by another company, known as the parent company, through ownership of more than half of their voting stock.

Stock Investments Account

An account that records the cost of stocks that have been purchased as investments by a company.