Corporate Social Responsibility Overview PDF

Corporate Social Responsibility Overview Answers 1. What is the primary goal of Corporate Social Responsibility (CSR)? A. To maximize profits for the organization only B. To engage in short-term philanthropy C. To maximize positive societal impact and minimize negative impact D. To min...

Corporate Social Responsibility Overview Answers 1. What is the primary goal of Corporate Social Responsibility (CSR)? A. To maximize profits for the organization only B. To engage in short-term philanthropy C. To maximize positive societal impact and minimize negative impact D. To minimize legal compliance requirements Answer: To maximize positive societal impact and minimize negative impact (C) CSR focuses on maximizing positive impact on society while minimizing negative effects. 2. Which of the following best distinguishes CSR from corporate philanthropy? A. Philanthropy involves environmental stewardship B. CSR is only about donations C. CSR meets stakeholder expectations while philanthropy is voluntary D. Philanthropy focuses on long-term sustainability Answer: CSR meets stakeholder expectations while philanthropy is voluntary (C) CSR involves meeting stakeholder expectations, while philanthropy is driven by voluntary actions away from core business focus. 3. Which aspect is NOT involved in the CSR methodology assessment? A. Employees B. Customers C. Environmental impact D. Market share growth Answer: Market share growth (D) CSR methodology includes assessing customers, environmental impact, communities, and employees, but not market share growth. 4. What does corporate philanthropy primarily focus on? A. Environmental sustainability initiatives B. Voluntary charitable activities and human causes C. Building long-term relationships with stakeholders D. Maximizing competitive advantage through CSR Answer: Voluntary charitable activities and human causes (B) Corporate philanthropy focuses on charitable actions and human causes, distinct from broader CSR objectives. 5. Which of the following is a responsibility of corporations in terms of social accountability? A. Focusing solely on profit generation B. Engaging minimally with community programs C. Acting as a good citizen by donating to public causes D. Reducing involvement in corporate governance Answer: Acting as a good citizen by donating to public causes (C) Corporations are expected to act as good citizens, contributing to public welfare and community initiatives. 6. In what aspect does CSR promote environmental stewardship? A. By focusing on cost-cutting measures to save resources B. By assessing environmental impacts and taking responsible actions C. By promoting only legal compliance with environmental regulations D. By making financial contributions to environmental groups Answer: By assessing environmental impacts and taking responsible actions (B) CSR includes evaluating environmental impacts and adopting responsible practices beyond mere legal compliance. 7. How does engaging in CSR benefit a corporation in the long-term? A. By emphasizing short-term profit maximization B. By enhancing reputation and stakeholder relationships C. By decreasing compliance with regulations D. By generating immediate financial returns Answer: By enhancing reputation and stakeholder relationships (B) Engaging in CSR can enhance a corporation's reputation and strengthen relationships with various stakeholders. 8. What are 'the 3 Ps' that CSR focuses on? A. Participation, Planning, and Publicity B. People, Profit, and Planet C. Performance, Profitability, and People D. Processes, Products, and Principles Answer: People, Profit, and Planet (B) 'The 3 Ps' of CSR refers to the focus on People, Profit, and Planet, emphasizing a balanced approach to performance. 9. What is the minimum percentage of average net profits that a company must spend on CSR activities according to the policy? A. 2% B. 1% C. 3% D. 4% Answer: 2% (A) Companies are required to spend at least 2% of their average net profits made during the preceding three financial years on CSR activities. 10. Which committee is responsible for formulating and recommending the CSR policy to the Board? A. Finance Committee B. Nomination Committee C. Audit Committee D. CSR Committee Answer: CSR Committee (D) The CSR Committee formulates and recommends the CSR policy, which outlines the activities to be undertaken by the company. 11. What must the company do if it fails to spend the required CSR amount for a financial year? A. Automatically transfer it to the central fund B. Specify the reasons in its report C. Ignore it until the next financial year D. Increase spending in the following year Answer: Specify the reasons in its report (B) If a company fails to spend the required CSR amount, the Board must specify the reasons in its report. 12. Within how many days must unspent CSR amounts be transferred to the 'Unspent CSR Account'? A. 30 days B. 15 days C. 60 days D. 45 days Answer: 30 days (A) Any unspent amount must be transferred to the Unspent CSR Account within 30 days from the end of the financial year. 13. What is the maximum duration for utilizing the amount in the Unspent CSR Account? A. Two financial years B. Three financial years C. Four financial years D. One financial year Answer: Three financial years (B) The company must spend the amount in the Unspent CSR Account within three financial years from the date of transfer. 14. What does the CSR Policy need to include according to the requirements set by the CSR Committee? A. Activities specified in Schedule VII B. A list of all employees involved in CSR activities C. Names of all beneficiaries D. Only the financial projections for the upcoming year Answer: Activities specified in Schedule VII (A) The CSR Policy must indicate the activities to be undertaken by the company as specified in Schedule VII. 15. Which model of CSR focuses on a voluntary commitment by companies to public welfare? A. Statist B. Stakeholder C. Ethical D. Liberal Answer: Ethical (C) The Ethical model emphasizes a voluntary commitment to public welfare, famously advocated by Mahatma Gandhi. 16. What should a company prioritize when spending its CSR funds? A. Research and Development projects B. Local area and surrounding regions C. National initiatives D. International projects Answer: Local area and surrounding regions (B) The company should give preference to the local area and areas around it where it operates for CSR spending. 17. Which of the following is NOT a responsibility of the Board regarding the CSR Policy? A. Ensure activities included in the CSR Policy are undertaken B. Approve the CSR Policy C. Disclose the policy contents in its report D. Monitor employee performance Answer: Monitor employee performance (D) Monitoring employee performance is not a responsibility assigned to the Board in relation to the CSR Policy. 18. What is a primary characteristic of the Liberal model of CSR? A. Companies must consider multiple stakeholders. B. State regulations guide corporate responsibilities. C. Corporate responsibilities are primarily to shareholders. D. Corporate responsibilities are significant to the community. Answer: Corporate responsibilities are primarily to shareholders. (C) The Liberal model, supported by Milton Friedman, states that corporate responsibilities are limited to those of private owners, particularly shareholders. 19. Which of the following is NOT listed as an advantage of implementing CSR? A. Improved financial performance B. Increased monopoly power C. Enhanced brand image D. Increased ability to attract employees Answer: Increased monopoly power (B) Increased monopoly power is not an advantage of CSR; rather, CSR promotes competition and innovation. 20. According to the CSR regulations in India, what is the minimum net profit a company must have to require a CSR committee? A. Rs. 1 crore (Rs. 10 million) B. Rs. 2 crore (Rs. 20 million) C. Rs. 10 crore (Rs. 100 million) D. Rs. 5 crore (Rs. 50 million) Answer: Rs. 5 crore (Rs. 50 million) (D) A company must have a net profit of Rs. 5 crore (Rs. 50 million) or more in the preceding financial year to constitute a CSR committee. 21. Which driver of CSR pertains to the perceptions and attitudes of the public towards a company? A. Government Regulation B. Employee Satisfaction C. Public Image D. Consumer Awareness Answer: Public Image (C) Public Image refers to how the public perceives a company's actions and policies, which can drive CSR efforts. 22. What primary purpose does Section 135(2) of the Indian Companies Act serve? A. To require a disclosure in the Board’s Report B. To define what CSR entails C. To outline penalties for non-compliance D. To limit corporate spending on CSR Answer: To require a disclosure in the Board’s Report (A) Section 135(2) mandates the Board's Report to disclose the composition of the CSR Committee. 23. What is the penalty for a company that defaults in complying with the CSR provisions? A. Five times the amount unspent B. Twice the amount unspent or one crore rupees, whichever is less C. Three times the amount unspent D. Only a verbal warning Answer: Twice the amount unspent or one crore rupees, whichever is less (B) The penalty structure specifies that the fine is twice the amount unspent or one crore rupees, whichever is less. 24. Which of the following is NOT specified as a CSR activity in the content provided? A. Ensuring environmental sustainability B. Promoting education among economically backward groups C. Investing in technological advancements for businesses D. Eradicating hunger and malnutrition Answer: Investing in technological advancements for businesses (C) The specified CSR activities focus on social improvement rather than direct business investments. 25. In which model of CSR do companies primarily respond to the needs of various stakeholders? A. Stakeholder B. Liberal C. Ethical D. Statist Answer: Stakeholder (A) The Stakeholder model, advocated by R. Edward Freeman, involves responding to the needs of customers, creditors, employees, communities, and others. 26. Which of the following factors is NOT a recognized driver of CSR? A. Consumer Awareness B. Technological Advancement C. Government Regulation D. Survival & Growth Answer: Technological Advancement (B) Technological Advancement is not listed as a driver of CSR; the recognized drivers include public image, government regulation, and consumer awareness. 27. What is one of the specified CSR activities related to women's empowerment? A. Increasing job quotas for women in companies B. Providing loans to women entrepreneurs C. Setting up technology parks for women D. Promoting gender equality and setting up homes for women Answer: Promoting gender equality and setting up homes for women (D) Promoting gender equality and providing homes for women is highlighted as a CSR activity. 28. What must a company do if it fails to spend the required amount on CSR activities by the end of the third financial year? A. File an extension request B. Carry it over to the next financial year C. Use the funds for internal development projects D. Transfer the unspent amount to a specified Fund within 30 days Answer: Transfer the unspent amount to a specified Fund within 30 days (D) The company is required to transfer the unspent amount to a specified Fund within 30 days. 29. Which of the following activities is related to ensuring environmental sustainability as per the content? A. Investing in urban infrastructure B. Conservation of natural resources and maintaining air quality C. Organizing community social events D. Promoting the use of clean energy sources Answer: Conservation of natural resources and maintaining air quality (B) Ensuring environmental sustainability includes the conservation of natural resources and maintaining quality of air. 30. What is the maximum penalty for an officer of the company in default of CSR spending? A. Two lakh rupees or one-tenth of the unspent amount, whichever is less B. No penalties apply to officers C. One crore rupees D. Five lakh rupees Answer: Two lakh rupees or one-tenth of the unspent amount, whichever is less (A) An officer in default faces a penalty of two lakh rupees or one-tenth of the unspent amount, whichever is less. 31. Which initiative is associated with the objective of promoting sanitation as outlined in the CSR activities? A. Digital India Initiative B. Swach Bharat Kosh C. Skill India Programme D. Smart Cities Mission Answer: Swach Bharat Kosh (B) The Swach Bharat Kosh is specifically mentioned for promoting sanitation. 32. Which of the following objectives is aimed at historically significant sites as part of CSR activities? A. Protection of national heritage and historical importance B. Development of modern art forms C. Promotion of national tourism D. Funding commercial art exhibitions Answer: Protection of national heritage and historical importance (A) The CSR activities include the protection of national heritage and restoration of historically significant sites.