Question

    The concept of CSR (Corporate Social Responsibility) is based on -

    A Stakeholder Theory Correct Answer Incorrect Answer
    B Ethical Theory Correct Answer Incorrect Answer
    C Human Social Theory Correct Answer Incorrect Answer
    D 3P Theory Correct Answer Incorrect Answer
    E Global Responsibility Theory Correct Answer Incorrect Answer

    Solution

    Edward Freeman defines, ‘a stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organization’s objectives.’ Thus, the term stakeholder includes (apart from shareholders), but not limited to, customers, employees, suppliers, community, environment and society at large. These and a host of other such ideas have given rise to the concept of Corporate Social Responsibility (CSR). The concept of CSR goes beyond charity or philanthropy and requires the company to act beyond its legal obligations and to integrate social, environmental and ethical concerns into its business process.

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