Question

After more than 100 years in business, Don, the president of a successful family-owned company, wants to give back to the people of the community for the many years of success that they have given to my father and me. He decides to donate a significant portion of profits to a charity every year. What Don's company is doing is an example of ________.

1) corporate social responsibility
2) responsibility code of ethics
3) economic responsibility
4) legal responsibility
5) corporate governance

Answer 1

Don's company's act of donating to charity is an example of corporate social responsibility, reflecting a commitment to the broader social good and people's welfare.

Step-by-step explanation:

Don's company's decision to donate a significant portion of profits to charity every year is an example of corporate social responsibility (CSR). Corporate social responsibility is a concept where businesses consider the interests and well-being of society by taking responsibility for the impact of their activities on customers, employees, communities, and the environment. This gesture reflects a commitment to making a positive social impact beyond the firm's economic and legal obligations. CSR actions can improve community goodwill, enhance a company's reputation, and potentially lead to increased business success.