SEC - II CIA 2025

1. What is the primary purpose of Corporate Social Responsibility (CSR)?

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• A) To increase short-term profits

• B) To fulfill ethical, social, and environmental responsibilities of a business

• C) To avoid paying taxes

• D) To increase product prices for customers

How does a business show responsibility towards its shareholders?

• A) By ignoring their investment returns

• B) By maximizing profits and ensuring transparency in financial dealings

• C) By reducing dividends to save company money

• D) By only focusing on social work, not financial performance

3. What is one way a company can fulfill its responsibility towards employees?

• A) Providing unsafe working conditions

• B) Ensuring fair wages, safe work environments, and career development opportunities

• C) Making employees work overtime without extra pay

• D) Ignoring employee health and safety regulations

4. A company’s responsibility towards customers includes:

• A) Selling low-quality products at high prices

• B) Providing safe, high-quality products and fair pricing

• C) Ignoring customer complaints

• D) Misleading customers with false advertisements

5. How can businesses contribute to the community?

• A) By polluting the environment

• B) By engaging in social welfare activities like education and healthcare programs

• C) By focusing only on making profits

• D) By reducing job opportunities in local areas

6. What is the main role of the government in ensuring corporate social responsibility?

• A) Controlling all business operations

• B) Imposing laws and regulations that encourage ethical business practices

• C) Increasing taxes on socially responsible businesses

• D) Forcing all companies to donate profits to charity

7. Under Indian law, companies with a net profit of ₹5 crore or more must spend at least what percentage of their profit on CSR activities?

• A) 1%

• B) 2%

• C) 5%

• D) 10%

8. Which of the following is an example of CSR initiatives by companies?

• A) Providing scholarships to underprivileged students

• B) Increasing employee working hours without benefits

• C) Selling expired products at a discount

• D) Avoiding safety measures in factories

9. How can a business be socially responsible towards the environment?

• A) By using sustainable resources and reducing carbon emissions

• B) By increasing waste production without proper disposal

• C) By using only non-renewable resources

• D) By cutting down forests for factory expansion

10. Which of the following companies is known for its CSR initiatives in India?

• A) Tata Group

• B) Kingfisher Airlines

• C) Sahara India

• D) Satyam Computers