Which statement best defines Corporate Social Responsibility?

• A. The obligation of an organization to maximise positive impacts for shareholders while minimising the negative effects.
• B. A philanthropic donations program independent of business strategy.
• C. A requirement to achieve annual profit growth at any cost.
• D. A legal framework for environmental compliance.

Answer: (A)

CSR is about a company's obligation to consider the social, environmental, and economic effects of its actions and to respond to stakeholder expectations. The best statement captures this by describing CSR as an obligation to maximise positive impacts and minimise negative effects, which aligns with pursuing long-term value for the business and its shareholders while responsibly managing externalities. Philanthropy detached from strategy, profit-at-any-cost approaches, and merely meeting legal requirements all miss the integrated, voluntary, strategic aspect of CSR that goes beyond compliance and short-term profits.