What term describes a business's concern for society's welfare?

• A. Corporate Social Responsibility
• B. Economic Influences
• C. Decision Tree
• D. Economies of Scale

Answer: (A)

The main concept being tested is corporate social responsibility. CSR describes a business’s concern for society’s welfare by actively considering the social, environmental, and economic impacts of its operations and by engaging with stakeholders beyond just maximizing profit. It involves ethical practices, sustainable decisions, transparent governance, and contributions to communities, aiming to create value for both the business and society.

The other terms refer to different ideas: economic influences are external factors that affect a firm’s performance; a decision tree is a tool used to map out potential outcomes of choices; economies of scale describe cost advantages from producing at larger volumes. None of these capture the broader duty a firm has toward society that CSR represents.