Question

The management staff at Doc's Motorcycles believes the company has a social responsibility to its community. They believe that the company can have the greatest impact in this area through cash contributions to local nonprofit organizations. This is an example of:___________.

Answer 1

Answer:

Corporate Social Responsibility (CSR)

Explanation:

Cash contributions to a local non-profit organization is an example of CSR effort. CSR is when companies attempt to integrate social and environmental concerns into business operation. Instead of focusing solely on goals such as revenue maximization, shareholder satisfaction or cost reduction, the business attempts to do more for the community or its environment.

By contributing to a non-profit organization, the business is focused on the welfare of others rather than simply its own.

While this form of charity helps society, it is also advantageous to Doc’s Motorcycles because although there is no monetary gain, it still enhances their business reputation and creates brand awareness.