Q.1 What does CSR stand for in business ethics?
Corporate Social Responsibility
Customer Service Relations
Corporate Strategic Review
Consumer Safety Regulation
Explanation - CSR refers to Corporate Social Responsibility, which is the concept that businesses have an obligation to contribute positively to society and the environment.
Correct answer is: Corporate Social Responsibility
Q.2 Which of the following best describes the purpose of CSR?
To maximize short-term profits
To serve only shareholders
To balance economic, social, and environmental goals
To reduce employee wages
Explanation - CSR aims to integrate business operations with social and environmental concerns while still being profitable.
Correct answer is: To balance economic, social, and environmental goals
Q.3 Which group of stakeholders benefits from CSR practices?
Employees
Customers
Communities
All of the above
Explanation - CSR practices benefit employees, customers, communities, and other stakeholders by promoting fairness, sustainability, and goodwill.
Correct answer is: All of the above
Q.4 Which of the following is NOT an example of CSR activity?
Providing scholarships for education
Reducing environmental pollution
Investing in child labor to reduce costs
Promoting workplace diversity
Explanation - CSR activities focus on ethical and responsible practices. Supporting child labor is unethical and against CSR principles.
Correct answer is: Investing in child labor to reduce costs
Q.5 In India, CSR was made mandatory for certain companies under which Act?
Indian Partnership Act, 1932
Companies Act, 2013
SEBI Act, 1992
Income Tax Act, 1961
Explanation - The Companies Act, 2013 mandates CSR spending for companies meeting specific financial thresholds.
Correct answer is: Companies Act, 2013
Q.6 According to the Indian Companies Act, 2013, companies must spend at least what percentage of their average net profits on CSR?
1%
2%
5%
10%
Explanation - The Act requires companies to spend a minimum of 2% of their average net profits from the preceding three years on CSR activities.
Correct answer is: 2%
Q.7 Which global guideline is widely associated with CSR reporting?
ISO 9001
Global Reporting Initiative (GRI)
GAAP Standards
Six Sigma
Explanation - The Global Reporting Initiative (GRI) provides guidelines for companies to report on sustainability and CSR activities.
Correct answer is: Global Reporting Initiative (GRI)
Q.8 Which of the following is a key benefit of CSR for companies?
Improved brand reputation
Lower tax compliance
Reduced employee training
Avoiding competition
Explanation - CSR helps companies gain goodwill and trust among stakeholders, leading to stronger brand reputation.
Correct answer is: Improved brand reputation
Q.9 The 'Triple Bottom Line' approach in CSR refers to:
Profit, People, Planet
Production, Performance, Pricing
Policy, Planning, Process
Profit, Process, Promotion
Explanation - The Triple Bottom Line approach emphasizes measuring success not just by profit but also by social and environmental performance.
Correct answer is: Profit, People, Planet
Q.10 Which famous economist introduced the concept that 'the business of business is business,' opposing CSR?
Milton Friedman
Adam Smith
John Maynard Keynes
Michael Porter
Explanation - Milton Friedman argued that businesses should focus only on profit maximization, not CSR, a view widely debated.
Correct answer is: Milton Friedman
Q.11 Which UN initiative encourages businesses to adopt sustainable and socially responsible policies?
UNESCO Program
UN Global Compact
UNICEF Partnership
UN WTO Treaty
Explanation - The UN Global Compact is a voluntary initiative for companies to align strategies with human rights, labor, environment, and anti-corruption principles.
Correct answer is: UN Global Compact
Q.12 CSR initiatives that reduce carbon emissions fall under which dimension?
Economic
Social
Environmental
Legal
Explanation - Activities that reduce pollution or carbon emissions are environmental CSR initiatives.
Correct answer is: Environmental
Q.13 Philanthropy in CSR usually involves:
Donating funds or resources to social causes
Maximizing profit margins
Avoiding taxes
Reducing employee wages
Explanation - Philanthropy is when businesses contribute financially or materially to social development initiatives.
Correct answer is: Donating funds or resources to social causes
Q.14 Which of the following is a criticism of CSR?
It increases transparency
It distracts from profit-making
It builds community trust
It creates sustainable business
Explanation - Critics argue CSR distracts businesses from their primary goal of profit, though many believe CSR enhances long-term profitability.
Correct answer is: It distracts from profit-making
Q.15 CSR activities like skill training for rural youth are an example of:
Environmental CSR
Economic CSR
Social CSR
Legal CSR
Explanation - Such initiatives address societal development, making them part of social CSR activities.
Correct answer is: Social CSR
Q.16 Who are the primary stakeholders in CSR?
Government
Shareholders
Employees and Society
Only Customers
Explanation - CSR primarily focuses on benefiting employees, society, and communities beyond shareholders.
Correct answer is: Employees and Society
Q.17 Which of the following Indian companies is well-known for strong CSR practices?
Infosys
Tata Group
OYO Rooms
Flipkart
Explanation - Tata Group is globally recognized for its extensive CSR activities in education, healthcare, and sustainability.
Correct answer is: Tata Group
Q.18 CSR policies are often included in a company’s:
Annual Report
Employee ID Cards
Tax Returns
Invoices
Explanation - Companies disclose CSR activities and spending in their Annual Report to maintain transparency.
Correct answer is: Annual Report
Q.19 CSR helps companies build:
Tax burdens
Employee dissatisfaction
Public goodwill
Unethical practices
Explanation - CSR creates goodwill among customers, employees, and society, improving brand trust.
Correct answer is: Public goodwill
Q.20 Which of these is an environmental CSR activity?
Tree plantation drives
Employee training programs
Paying dividends
Launching new products
Explanation - Tree plantation is an initiative to improve the environment and is categorized under environmental CSR.
Correct answer is: Tree plantation drives
Q.21 CSR activities in healthcare may include:
Building hospitals
Providing free medical camps
Awareness campaigns
All of the above
Explanation - CSR in healthcare includes various initiatives like hospitals, camps, and awareness programs for community well-being.
Correct answer is: All of the above
Q.22 Which dimension of CSR involves compliance with government laws?
Economic
Legal
Social
Environmental
Explanation - Legal CSR refers to obeying laws and regulations as part of responsible corporate behavior.
Correct answer is: Legal
Q.23 What is the role of the Board of Directors in CSR?
Approve CSR policy and oversee implementation
Write company advertisements
Manage daily accounts
Hire only top executives
Explanation - The Board ensures CSR compliance by approving policies and monitoring their execution.
Correct answer is: Approve CSR policy and oversee implementation
Q.24 CSR in education can include:
Providing scholarships
Building schools
Skill development programs
All of the above
Explanation - CSR in education covers scholarships, infrastructure, and skill training for better opportunities.
Correct answer is: All of the above
Q.25 The main objective of CSR is to:
Increase costs
Serve society and environment
Reduce competition
Evade taxes
Explanation - CSR balances profit-making with contributions to society and environmental sustainability.
Correct answer is: Serve society and environment