Which of the following is not one of the responsibilities that comes under CSR?

Corporate Social Responsibility (CSR) Question 1:

Regulation that arises to ensure that firm takes responsibility for the social costs of their products or production processes stem from which reason for government legislation of business-

1. To protect companies from each other
2. To protect companies from unfair business practices.
3. To protect the interests of the society
4. To protect businesses from unfair consumer demands

Answer (Detailed Solution Below)

Option 3 : To protect the interests of the society

The correct option is To protect the interests of the society

• Corporate social responsibility (CSR) is a self regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. 

• It is also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.   

Corporate Social Responsibility (CSR) Question 2:

The defenders of the sustainability approach toward Corporate Social Responsibility (CSR) point out that _________

A. All economic activity exists within a biosphere that support all life

B. The success of business must be judged only against profitability

C. People have a strong ethical duty to cause no harm and only a prime facie duty to prevent harm

D. Business sole responsibility is to fulfil the economic functions they were designed to serve

E. Customer service is most important

Choose the most appropriate answer from the options given below:

1. A and B only
2. B, C, D only
3. A and C only
4. A only

Answer (Detailed Solution Below)

Option 4 : A only

The defenders of the sustainability approach toward Corporate Social Responsibility (CSR) point out that all economic activity exists within a biosphere that supports all life.

• Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. 
• By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
• To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.

Corporate Social Responsibility (CSR) Question 3:

Which of the following are part of Corporate Social Responsibility (CSR) to consumers? 

a) Reasonable chances and the proper system for accomplishment and promotion 

b) To supply goods at reasonable prices even when there is sellers market 

c) Improving the efficiency of the business operation 

d) To provide an opportunity for being heard and redress genuine grievances 

Choose the correct answer from the options given below 

1. a) and b)
2. b) and d)
3. b) and c)
4. a) and c)

Answer (Detailed Solution Below)

Option 2 : b) and d)

Corporate Social Responsibility (CSR):

1. Corporate social responsibility (CSR) is a type of business self-regulation with the aim of being socially accountable.
2. There is no one "right" way companies can practice CSR; many corporate CSR initiatives strive to positively contribute to the public, the economy or the environment.
3. In today's socially conscious environment, employees and customers place a premium on working for and spending their money with businesses that prioritize CSR. 

​

The responsibility towards consumers that Corporate Social Responsibility includes is as follows:

• To provide goods of standard quality
• To charge fair prices i.e., to supply goods at reasonable prices even when there is a seller's market 
• To provide prompt and courteous after-sale services
• To handle consumer complaints and grievances quickly.
• To avoid unfair trade practices like adulteration, black marketing, and hoarding.

Reasonable chances and the proper system for accomplishment and promotion also improving the efficiency of the business operation are the management responsibilities.

Therefore, to supply goods at reasonable prices even when there is a seller's market and to provide an opportunity for being heard and redress genuine grievances are part of Corporate Social Responsibility (CSR) to consumers.

Corporate Social Responsibility (CSR) Question 4:

With reference to Corporate Social Responsibility (CSR), which of the statements is/are correct?

1. Companies (Corporate Social Responsibility) Rules, 2014 introduces mandatory CSR.

2. Under Section 135, every company having a net worth of at least Rs 500 crore, turnover of Rs. 1,000 crore or more, or a minimum net profit of Rs. 5 crore during the immediately preceding financial year has to make CSR expenditure.

3. Companies covered under this will have to spend at least one percent of their annual net profit in the activities under CSR.

Select the correct answer using the codes given below:

1. 1 only
2. 2 only
3. 1 and 2 only
4. 1, 2 and 3

Answer (Detailed Solution Below)

Option 3 : 1 and 2 only

The Correct Answer is 1 and 2 only.

• Companies (Corporate Social Responsibility) Rules, 2014 and Schedule VII which prescribes mandatory provisions for companies to fulfil their CSR. Hence, Statement 1 is correct.
• The CSR provisions within the Act are applicable to companies with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crores and more. Hence, Statement 2 is correct.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. Hence, Statement 3 is Not Correct.
   

• "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.

Corporate Social Responsibility (CSR) Question 5:

As per Carroll Model, the four levels of Corporate Social Responsibility are : 

1. Physical, economic, social and legal
2. Physical, economic, legal and ethical
3. Philanthropic, economic, legal and ethical
4. Philanthropic, economic, social and ethical 

Answer (Detailed Solution Below)

Option 3 : Philanthropic, economic, legal and ethical

Corporate Social Responsibility refers to a business’s behaviour, that it’s economically profitable, complies with the law, is ethical, and is socially supportive. Profitability and compliance with the law are the most important conditions for corporate social responsibility and when discussing the company’s ethics, and the level to which it supports the society it’s part of with money, time, and talent.

1. Carroll’s CSR pyramid is a framework that explains how and why organizations should take social responsibility.
2. The pyramid was developed by Archie Carroll and highlights the four most important types of responsibility of organizations.
3. Carroll’s four-part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time.”
4. The pyramid’s base is profit. This foundation is necessary for a company to meet all laws and regulations, as well as the demands of shareholders. Before a company can and should then take its philanthropic responsibility or discretionary responsibility, it must also meet its ethical responsibilities.

Thus, option 3 is the correct answer.

Top Corporate Social Responsibility (CSR) MCQ Objective Questions

With reference to the Corporate Social Responsibility (CSR), which of the statements is/are correct?

1. Companies Act 2014, introduces mandatory CSR.

2. Companies covered under this will have to spend at least one percent of their annual net-profit in the activities under CSR.

Select the correct answer using the codes given below:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer (Detailed Solution Below)

Option 4 : Neither 1 nor 2

The Correct Answer is Neither 1 nor 2

• Companies Act 2013, introduced mandatory CSR. Hence Statement 1 NOT is Correct.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. Hence Statement 2 is Not Correct.

• "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
• The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crores and more.

Which of the following are part of Corporate Social Responsibility (CSR) to consumers? 

a) Reasonable chances and the proper system for accomplishment and promotion 

b) To supply goods at reasonable prices even when there is sellers market 

c) Improving the efficiency of the business operation 

d) To provide an opportunity for being heard and redress genuine grievances 

Choose the correct answer from the options given below 

1. a) and b)
2. b) and d)
3. b) and c)
4. a) and c)

Answer (Detailed Solution Below)

Option 2 : b) and d)

Corporate Social Responsibility (CSR):

1. Corporate social responsibility (CSR) is a type of business self-regulation with the aim of being socially accountable.
2. There is no one "right" way companies can practice CSR; many corporate CSR initiatives strive to positively contribute to the public, the economy or the environment.
3. In today's socially conscious environment, employees and customers place a premium on working for and spending their money with businesses that prioritize CSR. 

​

The responsibility towards consumers that Corporate Social Responsibility includes is as follows:

• To provide goods of standard quality
• To charge fair prices i.e., to supply goods at reasonable prices even when there is a seller's market 
• To provide prompt and courteous after-sale services
• To handle consumer complaints and grievances quickly.
• To avoid unfair trade practices like adulteration, black marketing, and hoarding.

Reasonable chances and the proper system for accomplishment and promotion also improving the efficiency of the business operation are the management responsibilities.

Therefore, to supply goods at reasonable prices even when there is a seller's market and to provide an opportunity for being heard and redress genuine grievances are part of Corporate Social Responsibility (CSR) to consumers.

As per Carroll Model, the four levels of Corporate Social Responsibility are : 

1. Physical, economic, social and legal
2. Physical, economic, legal and ethical
3. Philanthropic, economic, legal and ethical
4. Philanthropic, economic, social and ethical 

Answer (Detailed Solution Below)

Option 3 : Philanthropic, economic, legal and ethical

Corporate Social Responsibility refers to a business’s behavior, that it’s economically profitable, complies with the law, is ethical, and is socially supportive. Profitability and compliance with the law are the most important conditions for corporate social responsibility and when discussing the company’s ethics, and the level to which it supports the society it’s part of with money, time, and talent.

1. Carroll’s CSR pyramid is a framework that explains how and why organizations should take social responsibility.
2. The pyramid was developed by Archie Carroll and highlights the four most important types of responsibility of organizations.
3. Carroll’s four-part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time.”
4. The pyramid’s base is profit. This foundation is necessary for a company to meet all laws and regulations, as well as the demands of shareholders. Before a company can and should then take its philanthropic responsibility or discretionary responsibility, it must also meet its ethical responsibilities.

Thus, option 3 is the correct answer.

The defenders of the sustainability approach toward Corporate Social Responsibility (CSR) point out that _________

A. All economic activity exists within a biosphere that support all life

B. The success of business must be judged only against profitability

C. People have a strong ethical duty to cause no harm and only a prime facie duty to prevent harm

D. Business sole responsibility is to fulfil the economic functions they were designed to serve

E. Customer service is most important

Choose the most appropriate answer from the options given below:

1. A and B only
2. B, C, D only
3. A and C only
4. A only

Answer (Detailed Solution Below)

Option 4 : A only

The defenders of the sustainability approach toward Corporate Social Responsibility (CSR) point out that all economic activity exists within a biosphere that supports all life.

• Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. 
• By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
• To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.

Sequence the following CSR eligibility criteria and spending as per the provisions of the Indian Companies Act 2013.

A. Positive networth of Rs. 500 crores or more

B. Two percent of average profit spend on CSR

C. Net Profit of Rs. 5 crore or more in given financial year

D. Turnover of Rs. 1,000 crore or more

E. Penal action for non-compliance 

Choose the correct answer from the options given below:

1. E, B, D, C and A
2. B, E, A, C and D
3. A, D, C, B and E
4. C, B, A, D and E

Answer (Detailed Solution Below)

Option 3 : A, D, C, B and E

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

CSR eligibility criteria and spending as per the provisions of the Indian Companies Act 2013:

• Every company having a net worth of rupees five hundred crores or more,
• Or the turnover of rupees one thousand crores or more or
• a net profit of rupees five crores or more during any financial year.
• Two percent of average profit spend on CSR
• Penal action for non-compliance

shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

Therefore, option 3 is the correct answer.

Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to

(A) Political awareness, social security and inclusion

(B) Public health, education and literacy

(C) Maintaining ecological balances and protecting environment

(D) Gender diversity, profiteering and market controlling

(E) Rendering, Sponsoring and donating to social and charitable activities

Choose the correct answer from the options given below:

1. A, B and D only
2. B, C and E only
3. C, D and E only
4. A, B and C only

Answer (Detailed Solution Below)

Option 2 : B, C and E only

The correct answer is B, C and E only

• The concept of corporate social responsibility (CSR) is that a company should play a good role in the community and take into account the environmental and social consequences of its business actions.
• It's tied to ESG, which stands for Environmental, Social, and Governance, and sustainability, which creates economic, social, and environmental benefit.
• All three focus on non-financial elements that large and small businesses should consider when making decisions.

•  Corporate Social Responsibility (CSR) to act ethically by the business, the life of the workforce and their families as well as the local community and society at large.
• There is a constant commitment to contribute to economic development while improving quality.
• The environment here also includes the improvement of nature.

Corporate Social Responsibility (CSR) Question 12:

With reference to the Corporate Social Responsibility (CSR), which of the statements is/are correct?

1. Companies Act 2014, introduces mandatory CSR.

2. Companies covered under this will have to spend at least one percent of their annual net-profit in the activities under CSR.

Select the correct answer using the codes given below:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer (Detailed Solution Below)

Option 4 : Neither 1 nor 2

The Correct Answer is Neither 1 nor 2

• Companies Act 2013, introduced mandatory CSR. Hence Statement 1 NOT is Correct.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. Hence Statement 2 is Not Correct.

• "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
• The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crores and more.

Corporate Social Responsibility (CSR) Question 13:

Which of the following are part of Corporate Social Responsibility (CSR) to consumers? 

a) Reasonable chances and the proper system for accomplishment and promotion 

b) To supply goods at reasonable prices even when there is sellers market 

c) Improving the efficiency of the business operation 

d) To provide an opportunity for being heard and redress genuine grievances 

Choose the correct answer from the options given below 

1. a) and b)
2. b) and d)
3. b) and c)
4. a) and c)

Answer (Detailed Solution Below)

Option 2 : b) and d)

Corporate Social Responsibility (CSR):

1. Corporate social responsibility (CSR) is a type of business self-regulation with the aim of being socially accountable.
2. There is no one "right" way companies can practice CSR; many corporate CSR initiatives strive to positively contribute to the public, the economy or the environment.
3. In today's socially conscious environment, employees and customers place a premium on working for and spending their money with businesses that prioritize CSR. 

​

The responsibility towards consumers that Corporate Social Responsibility includes is as follows:

• To provide goods of standard quality
• To charge fair prices i.e., to supply goods at reasonable prices even when there is a seller's market 
• To provide prompt and courteous after-sale services
• To handle consumer complaints and grievances quickly.
• To avoid unfair trade practices like adulteration, black marketing, and hoarding.

Reasonable chances and the proper system for accomplishment and promotion also improving the efficiency of the business operation are the management responsibilities.

Therefore, to supply goods at reasonable prices even when there is a seller's market and to provide an opportunity for being heard and redress genuine grievances are part of Corporate Social Responsibility (CSR) to consumers.

Corporate Social Responsibility (CSR) Question 14:

With reference to Corporate Social Responsibility (CSR), which of the statements is/are correct?

1. Companies (Corporate Social Responsibility) Rules, 2014 introduces mandatory CSR.

2. Under Section 135, every company having a net worth of at least Rs 500 crore, turnover of Rs. 1,000 crore or more, or a minimum net profit of Rs. 5 crore during the immediately preceding financial year has to make CSR expenditure.

3. Companies covered under this will have to spend at least one percent of their annual net profit in the activities under CSR.

Select the correct answer using the codes given below:

1. 1 only
2. 2 only
3. 1 and 2 only
4. 1, 2 and 3

Answer (Detailed Solution Below)

Option 3 : 1 and 2 only

The Correct Answer is 1 and 2 only.

• Companies (Corporate Social Responsibility) Rules, 2014 and Schedule VII which prescribes mandatory provisions for companies to fulfil their CSR. Hence, Statement 1 is correct.
• The CSR provisions within the Act are applicable to companies with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. 5 crores and more. Hence, Statement 2 is correct.
• The Act encourages companies to spend 2% of their average net profit in the previous three years on CSR activities. Hence, Statement 3 is Not Correct.
   

• "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.
• In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.

Corporate Social Responsibility (CSR) Question 15:

Social responsibility of business is based on

1. Profit motive
2. Service motive
3. Trusteeship theory
4. both 2 and 3

Answer (Detailed Solution Below)

Option 4 : both 2 and 3

The correct answer is both 2 and 3

• Social Responsibility: Social Responsibility of a business obligation and responsibilities which it requires to fulfill for the environment and society as a whole.

• The social responsibility of business is based on service motive as it is expected to provide good quality service for the welfare of the society rather than just maximizing profit on the cost of service.
• Social responsibility of business is based on Trusteeship Theory as it is expected from the business to act as a trustee of the people's trust and belief and look after for the betterment of the people in general.

Which of the following is not a responsibility of CSR?

What are the 4 CSR responsibilities?

What is CSR and its responsibilities?

Which are the 3 main concepts involved in CSR?