Corporate Social Responsibility Practice Test 2025 – Complete Exam Prep

Question: 1 / 400

What effect does CSR have on stakeholder trust?

It diminishes trust due to focus on profits

It builds trust and loyalty among stakeholders

Corporate Social Responsibility (CSR) plays a significant role in building trust and loyalty among stakeholders. When a company actively engages in CSR practices, it demonstrates a commitment to ethical behavior, social welfare, and environmental sustainability. This commitment resonates with stakeholders, including customers, employees, suppliers, and the community, fostering a positive image and reinforcing a sense of reliability and integrity.

Stakeholders are increasingly looking for companies that align with their values. By participating in CSR activities, companies can connect with their audience on a deeper level, showcasing their dedication not only to profit but also to creating a positive impact in society. This alignment of values contributes to a stronger reputation and enhances the overall trust stakeholders place in the company, leading to increased loyalty and long-term relationships.

Consequently, the perception that a company prioritizes social responsibility over mere financial gains contributes to an enhanced overall trust in the brand, engaging stakeholders more effectively.

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It has no impact on trust

It only affects reputation, not trust

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