Those who oppose corporate social responsibility believe that Blank______.
Multiple choice question.
businesses cannot succeed in societies that fail
businesses who are socially responsible will earn more
benevolence is the highest virtue
it is using investors’ money in ways they did not intend
The Correct Answer and Explanation is :
The correct answer is D: it is using investors’ money in ways they did not intend.
Opponents of Corporate Social Responsibility (CSR) argue that businesses should focus solely on profit generation for their shareholders and that engaging in CSR initiatives diverts resources away from this primary goal. In their view, businesses are legally obligated to prioritize the financial interests of their investors. If a company engages in CSR activities, such as donating to charities, reducing environmental impact beyond legal requirements, or improving worker conditions, critics argue that this involves using investors’ money in ways that may not align with their expectations or interests. Investors typically invest in companies with the understanding that their primary returns will be monetary, and they may not agree with how the company allocates funds for non-profit or socially responsible causes.
This perspective is rooted in a traditional economic view known as the shareholder primacy model, which holds that the primary purpose of a business is to maximize profits for its shareholders. Under this model, any effort to address social or environmental issues is seen as a distraction that could undermine the company’s ability to generate wealth for its investors. Some critics argue that CSR is not only an inefficient use of resources but also a potentially harmful business strategy if it reduces short-term profits, potentially hurting shareholders.
However, proponents of CSR contend that socially responsible practices can enhance long-term profitability by building a positive reputation, improving employee morale, and fostering customer loyalty. These supporters argue that, far from wasting resources, CSR can be a valuable investment in the business’s future success.
In summary, those who oppose CSR see it as an inappropriate use of company funds that should be strictly directed toward maximizing shareholder value, not addressing broader social or environmental issues.