According to the normative view of CSR, why should firms engage in responsible practices?

According to the normative view of CSR, why should firms engage in responsible practices?

• A. To be compliant with laws
• B. To enhance shareholder value
• C. Due to societal obligations
• D. For competitive advantage

Answer: (C)

The normative view of Corporate Social Responsibility (CSR) posits that firms should engage in responsible practices primarily because they have societal obligations. This perspective emphasizes the ethical duty of businesses to consider the wider impact of their actions on society, the environment, and various stakeholders, not just shareholders. Firms acting out of a sense of responsibility bolster social welfare, contribute to community development, and help to address social and environmental issues. While being compliant with laws, enhancing shareholder value, and achieving competitive advantage are important aspects of business strategy, they are generally seen as instrumental reasons for engaging in CSR—meaning they are secondary benefits or outcomes of engaging in responsible behavior. The normative view specifically highlights the moral and ethical obligation firms have to operate in ways that are beneficial to society at large. This intrinsic motivation to do good for the sake of doing good underpins the rationale for the CSR initiatives that go beyond mere compliance or profit maximization.

The normative view of Corporate Social Responsibility (CSR) posits that firms should engage in responsible practices primarily because they have societal obligations. This perspective emphasizes the ethical duty of businesses to consider the wider impact of their actions on society, the environment, and various stakeholders, not just shareholders. Firms acting out of a sense of responsibility bolster social welfare, contribute to community development, and help to address social and environmental issues.

While being compliant with laws, enhancing shareholder value, and achieving competitive advantage are important aspects of business strategy, they are generally seen as instrumental reasons for engaging in CSR—meaning they are secondary benefits or outcomes of engaging in responsible behavior. The normative view specifically highlights the moral and ethical obligation firms have to operate in ways that are beneficial to society at large. This intrinsic motivation to do good for the sake of doing good underpins the rationale for the CSR initiatives that go beyond mere compliance or profit maximization.