Question

Assertion (A):
Social responsibilities of business contribute to the economic viability and performance of business enterprises.
Reason (R):
In the short run, expenditure on social action programmes may reduce the amount of profit, but in the long run such expenditure improves the socio-economic environment of business.

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Hint:

Logic Tip: Social responsibility may reduce short-term profits but increases long-term goodwill and sustainability.

Answer 1

The Correct Option is A

Step 1:
Business organizations perform social responsibilities towards society, employees, consumers, and environment.

Step 2:
Social responsibility activities improve:
• Public image
• Customer trust
• Employee satisfaction
• Long-term sustainability

Step 3:
Although social expenditure may reduce short-term profits, it improves the business environment and long-term profitability. Thus, the reason correctly explains the assertion.

Step 4:
Therefore: \[ \boxed{\text{Both (A) and (R) are correct and (R) correctly explains (A)}} \] Hence, the correct answer is: \[ \boxed{\text{(1)}} \]