Question

Which of the following is a benefit of company's social responsibility related to human resources?

• A. Increasing short term profits
• B. Avoiding taxes
• C. Reducing product quality to save costs
• D. Aiding in recruitment and retention of employees

Hint:

Remember: Human Resources (HR) deals with employees. "Recruitment and retention" are the core functions of HR that benefit from a good company reputation.

Answer 1

The Correct Option is D

Step 1: Concept
Corporate Social Responsibility (CSR) refers to a company's commitment to manage the social, environmental, and economic effects of its operations responsibly.

Step 2: Meaning
CSR impacts various stakeholders, including customers, society, and internal human resources (employees).

Step 3: Analysis

• Increasing short term profits is an economic goal, not a social responsibility benefit. In fact, CSR often requires short-term investment.

• Avoiding taxes is an illegal/unethical practice, directly opposed to social responsibility.

• Reducing product quality harms consumers and violates ethical responsibilities.

• Aiding in recruitment and retention is a direct HR benefit. Employees prefer to work for, and stay loyal to, companies that are ethical, fair, and socially responsible.

Step 4: Conclusion
A strong CSR profile enhances the employer brand, making it easier to attract and keep top talent.

Final Answer: (D)