Corporate Social Responsibility Practice Test 2025 – Complete Exam Prep

Question: 1 / 400

Which of the following best reflects the impact of CSR on employee retention?

It leads to a decline in employee productivity

Employees often feel a greater sense of purpose

Choosing the option that emphasizes how CSR positively influences employee retention is insightful. It is well understood that when organizations actively engage in corporate social responsibility initiatives, employees tend to resonate with the values and mission of the company. This alignment fosters a greater sense of purpose among employees, as they perceive their work as contributing to broader societal goals.

When employees feel that their organization is committed to making a positive impact, they develop a stronger emotional connection to their workplace. This connection enhances job satisfaction and loyalty, leading to higher retention rates. The idea that they are part of something meaningful can motivate employees, making them more likely to stay with the company rather than seek opportunities elsewhere.

In contrast, options that suggest a decline in productivity or discouragement of teamwork do not account for the collaborative and motivated atmosphere that CSR can create. Moreover, confusion about company values is contrary to the clarity and direction CSR initiatives aim to provide within an organization. Overall, the beneficial effects of CSR on employee morale and motivation highlight its critical role in enhancing retention.

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It discourages teamwork among employees

It creates confusion about company values

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