ICANBusiness, Management and FinanceBusiness and its Environment2024

Which of the following BEST describes the concept of 'corporate social responsibility' (CSR) in the context of the Nigerian business environment?

AA legal obligation imposed by CAMA 2020 requiring companies to donate 5% of pre-tax profit to charity
BA voluntary commitment by businesses to contribute to sustainable economic development while improving the quality of life of the workforce and societyCORRECT
CA mandatory requirement under the Financial Reporting Council of Nigeria (FRCN) Act 2011 for listed companies to publish sustainability reports
DAn obligation under the Investment and Securities Act (ISA) 2007 for public companies to establish community development funds
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
CSR is fundamentally a voluntary business practice whereby companies integrate social and environmental concerns into their operations beyond legal compliance. None of the Nigerian statutes cited in the distractors impose a mandatory CSR donation percentage or fund as described; option B correctly reflects the internationally accepted and Nigerian business-practice definition of CSR.
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