What is Corporate Social Responsibility (CSR)?

• A. An organisation's obligation to maximise its positive impact and minimise its negative impact on society
• B. A system for auditing financial performance
• C. A code for marketing ethics only
• D. A government regulation

Answer: (B)

CSR is about an organisation taking responsibility for the effects its actions have on society and the environment, not just focusing on profit. It means actively trying to maximise positive impacts—like supporting communities, ethical sourcing, and sustainable production—while minimising negative ones such as pollution, poor working conditions, or resource waste. This goes beyond simply auditing financial performance, which concentrates on numbers and profit, and it isn’t limited to marketing ethics or government rules. So the statement that describes CSR as an organisation’s obligation to balance positive and negative impacts on society best captures what CSR means.