Corporate social responsibility (CSR) is based on the idea that firms should act responsibly to promote public benefit and that they can profit through such activities, but this idea is inherently flawed. Companies inevitably try to maximize their profits, and social welfare is not the primary motive in most cases; for example, cases in which social welfare is delivered by serving healthier foods or by opting for fuel-efficient vehicles. Therefore, social welfare is a by-product rather than an objective in most CSR activities.

Which of the following is an assumption made by the author?

Correct answer marked below

Products such as fuel-efficient cars are created because of consumer demands.

Most CSR activities are affiliated to products such as healthier foods or fuel-efficiency.

In most instances of CSR activities, it is not possible for companies to extract any additional profit by going the non-CSR route.

Correct

Companies’ long-term interests are oriented more toward profit acquisition than social welfare.

The higher a company’s desire to maximize its profits, the lower is it's prioritizing of the objective of social welfare.

You can see the correct answer above. Sign in for free to unlock the complete worked solution.

Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.

Explanation

Create a free account to reveal the correct answer, see the step-by-step explanation, and start tracking your GMAT progress.

Comments

Be the first to share your thoughts and help others understand it better.

What this question tests

Whether you can identify the unstated assumption a critical-reasoning argument depends on.

Picking an option that strengthens the argument or is merely relevant instead of one that is required.