Corporate Social Responsibility Practice Test 2026 – Complete Exam Prep

The concept of Creating Shared Value (CSV) is fundamentally about the interconnectedness of economic value and social value. It emphasizes that businesses can generate profit by addressing societal challenges, thus creating a win-win situation where both the company and the community benefit. This approach encourages companies to find business opportunities that contribute positively to society while also enhancing their own competitive edge.

Option B highlights this connection by stating that value can be created for both the company and society simultaneously. This approach transcends traditional corporate social responsibility by integrating social improvement directly into the business strategy rather than treating it as a separate philanthropic effort.

The other options do not align with the principles of CSV. Focusing solely on product development does not consider the societal impact of that development. Limiting employee benefits does not create shared value, as it compromises the well-being of employees without providing any benefit to society. Similarly, reducing costs through layoffs does not generate shared value; rather, it can create negative social outcomes, such as job loss and economic instability within communities.