Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

Corporate social responsibility (CSR) refers to a business model that emphasizes a company's commitment to being socially accountable to itself and its stakeholders, including employees, customers, suppliers, and the community at large. This model encourages companies to conduct their operations in ways that enhance social welfare, minimize negative impacts on society, and contribute positively to the environment and community.

By adopting CSR, businesses recognize that they have obligations that extend beyond profit maximization. It involves integrating ethical practices into the corporate strategy, making decisions that not only consider financial returns but also the broader implications for society and the environment. This approach fosters trust and improves the company's reputation, ultimately leading to long-term sustainability.

The other options do not capture the essence of CSR. While some may touch on aspects related to social accountability or operational costs, they fail to embrace the comprehensive view that CSR entails, which includes ethical practices, stakeholder engagement, and a commitment to contributing positively to the community and the environment.