Corporate Social Responsibility (CSR) Practice Test 2025 – Your All-In-One Guide to Master CSR Exam Success

One way that Corporate Social Responsibility (CSR) can enhance a company's resilience is through diversifying investments and preparing for crises. This approach involves a holistic strategy where a company proactively manages risks by considering the social, environmental, and economic impacts of its operations. By investing in sustainable practices and being engaged with various stakeholders, a company can create a more robust framework that is better equipped to handle potential disruptions.

For instance, by prioritizing sustainability and responsible sourcing, businesses can mitigate supply chain risks, potentially leading to improved relationships with suppliers and communities. This not only prepares them for unforeseen crises but also positions them favorably in the eyes of consumers and investors, who are increasingly valuing responsibility and resilience in business practices.

The other options do not contribute to resilience; focusing on short-term gains undermines long-term stability, limiting stakeholder interactions can isolate the company during crises, and reducing product quality erodes customer trust and loyalty, making the organization more vulnerable.