Question

There is a statement followed by two arguments. Choose the correct option which gives the decision on the arguments, which is derived from the statement.

Statement: The new amendment of Corporate Social Responsibility (CSR) in India refers to bringing an overall positive impact on the communities, cultures, societies and environments. The fundamentals of CSR rest on the fact that not only public policy but even corporate should be responsible enough to address social issues.

Argument I: Government should not enforce companies to take up CSR.

Argument II: Companies moral responsibility is to take up CSR for a long run benefit.

• A. Argument II is correct but Argument I is wrong
• B. Argument I is correct but Argument II is wrong
• C. Both the arguments are false
• D. Both the arguments are correct

Hint:

Check each argument only against what the statement says about who should be responsible for CSR, government policy or the companies themselves.

Answer 1

The Correct Option is A

This question checks whether you can judge each argument against what the statement actually says, not against your own opinion.

1. Argument I (Government should not enforce companies to take up CSR): The statement says CSR rests on the idea that public policy, meaning government rules, should also push companies to be responsible. Saying government should not enforce CSR goes directly against this idea, so the argument does not follow from the statement and is wrong.
2. Argument II (Companies moral responsibility is to take up CSR for a long run benefit): The statement says corporates, not just public policy, should be responsible enough to address social issues. This argument restates that idea in different words and adds a sensible reason, long run benefit, so it fits the statement and is correct.

Since Argument II matches the statement and Argument I contradicts it, the correct choice is option A: Argument II is correct but Argument I is wrong.