Which of the following is the best example of corporate social responsibility affecting the marketplace?

• A. A company reduces its carbon emissions to meet environmental standards, attracting environmentally conscious consumers.
• B. A business lowers prices to compete with a rival.
• C. A firm increases its advertising budget to boost sales.
• D. A company invests in new technology to increase production efficiency.

Answer: (A)

Verified step by step guidance

1. Understand the concept of corporate social responsibility (CSR), which refers to a company's efforts to operate in an ethical and sustainable manner, often considering social and environmental impacts beyond just profit.
2. Identify the key elements of CSR in the options: look for actions that reflect ethical behavior, environmental care, or social benefits rather than purely economic or competitive strategies.
3. Analyze each option: lowering prices and increasing advertising are competitive business strategies focused on market share, not CSR; investing in new technology for efficiency is a business improvement but not necessarily CSR unless it has social/environmental goals.
4. Focus on the option where the company reduces carbon emissions to meet environmental standards, as this directly relates to environmental responsibility and can attract consumers who value sustainability, showing CSR's effect on the marketplace.
5. Conclude that the best example of CSR affecting the marketplace is the company reducing carbon emissions to appeal to environmentally conscious consumers, linking ethical behavior with market outcomes.