What characterizes a defensive strategy in business practice?

What characterizes a defensive strategy in business practice?

• A. A focus on innovative CSR initiatives
• B. Engagement with community stakeholders
• C. Compliance with regulations with little top management commitment
• D. A voluntary approach to CSR beyond legal requirements

Answer: (C)

A defensive strategy in business practice is characterized by the approach of ensuring compliance with regulations rather than actively advocating for change or embracing broader corporate social responsibility (CSR) initiatives. In this context, being compliant means adhering to the legal requirements that govern business operations, which reflects a more reactive stance. Essentially, organizations employing a defensive strategy prioritize meeting the minimum legal standards to avoid penalties or negative repercussions, rather than proactively engaging in CSR activities or cultivating positive relationships with stakeholders. This approach often results in limited commitment from top management, as the focus is primarily on avoiding risks rather than fostering innovation or community engagement. In contrast, a focus on innovative CSR initiatives, engagement with community stakeholders, and taking a voluntary approach to CSR beyond legal requirements represent more progressive business strategies that aim to improve social impact and enhance corporate reputation. These strategies indicate a commitment to ethical practices and social responsibility, which are not aligned with the characteristics of a defensive strategy.

A defensive strategy in business practice is characterized by the approach of ensuring compliance with regulations rather than actively advocating for change or embracing broader corporate social responsibility (CSR) initiatives. In this context, being compliant means adhering to the legal requirements that govern business operations, which reflects a more reactive stance.

Essentially, organizations employing a defensive strategy prioritize meeting the minimum legal standards to avoid penalties or negative repercussions, rather than proactively engaging in CSR activities or cultivating positive relationships with stakeholders. This approach often results in limited commitment from top management, as the focus is primarily on avoiding risks rather than fostering innovation or community engagement.

In contrast, a focus on innovative CSR initiatives, engagement with community stakeholders, and taking a voluntary approach to CSR beyond legal requirements represent more progressive business strategies that aim to improve social impact and enhance corporate reputation. These strategies indicate a commitment to ethical practices and social responsibility, which are not aligned with the characteristics of a defensive strategy.