Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test

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Prepare effectively for the CESGA EFFAS Exam. Study with comprehensive quizzes featuring flashcards and multiple-choice questions. Each question comes with hints and explanations to enhance understanding and readiness.

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What does corporate social responsibility primarily aim to enhance?

Profit maximization.
Social and environmental welfare.
Market dominance.
Product innovation only.

The correct answer is: Social and environmental welfare.

Corporate social responsibility (CSR) primarily aims to enhance social and environmental welfare by encouraging businesses to operate ethically and responsibly. This includes considering the impact of their operations on various stakeholders, including employees, customers, communities, and the broader environment. Through CSR initiatives, companies seek to contribute positively to society, which can involve sustainable business practices, community engagement, and ethical labor practices. The focus is on creating a balance between economic growth and the well-being of society and the environment. While profit can be a byproduct of successful CSR efforts through improved brand reputation and customer loyalty, the primary intent is to foster a more sustainable and equitable world. The other choices do not capture the core intent of CSR. While profit maximization may be a goal for any business, it is not the objective of CSR. Similarly, striving for market dominance or product innovation specifically does not align with the broader goals of enhancing societal and environmental welfare that CSR embodies.