Question

Which of the following is not an economic/rational argument in favor of corporate social responsibility (CSR)? A. CSR helps a company anticipate and reflect societal concerns in order to minimize operational and financial risks on the business. B. CSR has been shown to improve firms' financial performance over the long-term. O C. Firms take from their various stakeholders (e.g., employees, government, communities, environment, etc.) in order to deliver their products/services, so they should give back to those stakeholders. O D.CSR helps a company look good (i.e., improve its reputation) by matching firm operations with societal values.

Answer 1

The correct answer is B. CSR has been shown to improve firms' financial performance over the long-term.

Step-by-step explanation:

The correct answer is B. CSR has been shown to improve firms' financial performance over the long-term.

The economic/rational arguments in favor of corporate social responsibility (CSR) are:

1. CSR helps a company anticipate and reflect societal concerns in order to minimize operational and financial risks on the business.
2. Firms take from their various stakeholders (e.g., employees, government, communities, environment, etc.) in order to deliver their products/services, so they should give back to those stakeholders.
3. CSR helps a company look good (i.e., improve its reputation) by matching firm operations with societal values.

Option B, CSR has been shown to improve firms' financial performance over the long-term, is an economic/rational argument in favor of CSR.