Question

A firm's commitment to engage in corporate social responsibility through a transition to renewable energy sources as demanded by its place within a global community would best be supported by which view?

a. Stakeholder primacy
b. Socially responsible investment (SRI)
c. Shareholder primacy
d. Environmental, social, and governance (ESG) performance

Answer 1

The best view that would support a firm's commitment to engage in corporate social responsibility through a transition to renewable energy sources is Environmental, social, and governance (ESG) performance.

Step-by-step explanation:

The best view that would support a firm's commitment to engage in corporate social responsibility through a transition to renewable energy sources as demanded by its place within a global community is the Environmental, social, and governance (ESG) performance view.

ESG performance refers to a company's efforts to consider environmental, social, and governance factors in its business practices. by transitioning to renewable energy sources a company is demonstrating its commitment to reducing its environmental impact and promoting sustainable practices. this aligns with the principles of ESG performance, which advocates for responsible and ethical corporate behavior.

Answer 2

A firm's transition to renewable energy as part of its corporate social responsibility aligns best with the Environmental, Social, and Governance (ESG) performance view, which specifically focuses on sustainable, ethical impacts as well as governance practices.

Step-by-step explanation:

A firm's commitment to transitioning to renewable energy sources as part of its corporate social responsibility would best be supported by Environmental, Social, and Governance (ESG) performance. The ESG framework focuses on sustainable and ethical impact alongside financial performance, encompassing a company's approach to environmental stewardship, social responsibility, and governance practices. In contrast, shareholder primacy focuses on maximizing shareholder wealth, often at the expense of other considerations. Stakeholder theory does seek a balance of interests, including social and environmental concerns, but it is the ESG criteria that specifically measure and guide performance in these areas. Socially responsible investment (SRI) is indeed an investment strategy that considers ESG factors, but as a corporate commitment, the ESG performance view is more directly related to operational practices and corporate governance.