Certified Production & Operations Manager (POM) Practice Exam

What is a fundamental goal of corporate social responsibility?

1. To increase market share

2. To enhance corporate profits

3. To benefit stakeholders and the community

4. To comply with government regulations

The correct answer is: To benefit stakeholders and the community

A fundamental goal of corporate social responsibility (CSR) is to benefit stakeholders and the community. This approach reflects a company's commitment to operating ethically and sustainably, ensuring that its actions positively impact not only its shareholders but also employees, customers, suppliers, and the wider community. The essence of CSR lies in recognizing that businesses can play a vital role in societal development and environmental stewardship. By focusing on benefiting stakeholders and the community, companies can help foster goodwill, build a positive brand image, and engage in practices that lead to long-term sustainability. This aligns business objectives with societal needs, promoting economic, social, and environmental well-being. In contrast, while increasing market share, enhancing corporate profits, or complying with government regulations may also be important for a company's success, these goals do not capture the core intent of CSR. They often prioritize financial metrics over the broader societal impact that CSR emphasizes.