Corporate Social Responsibility Practice Test 2025 – Complete Exam Prep

Investing in a fund meeting specific social criteria is a prime example of a socially responsible investment (SRI) because it reflects a commitment to considering social, environmental, and ethical factors alongside financial returns. SRIs focus on directing capital towards companies or funds that adhere to certain social norms or practices, such as sustainable environmental policies, fair labor practices, or positive community engagement.

This approach goes beyond mere profit maximization and incorporates a broader impact on society and the environment. Investors who choose this route often evaluate potential investments based on how well they align with their personal values and the social impact they wish to support.

In contrast, the other options do not prioritize social responsibility in investment decisions. Investing in any publicly traded company does not consider the social criteria that define SRI. Focusing solely on profit margins neglects ethical or sustainable considerations, while investing without regard to social impact completely disregards the principles of socially responsible investing.