Question

1. Corporate strategy encompasses a firm’s actions with the aim to achieve its objectives at a competitive advantage.

2. Corporates try to influence public policies since they are greatly affected by it.

3. Corporates allocate a part of their profits for social welfare.

Which of the statement(s) about corporates do you think is correct?

• A. 1 and 3 only
• B. 2 and 3 only
• C. 1 and 2 only
• D. 1, 2, and 3

Answer 1

The correct option is D 1, 2, and 3

Corporate strategy encompasses a firm’s well defined long-term plan to achieve its goals. Firms analyse their business plans in depth in order to optimize human capital, processes, and governance.

Governments and corporates interact with each other for a number of reasons. Firms lobby for a free-market economy with minimal governmental interventions. Firms try to influence public policy to reduce the costs and burdens associated with government taxes, regulations, and policies.

Corporate Social Responsibility (CSR) refers to the initiatives of companies to contribute positively to the society. They allocate a small part of their profits for the well-being of the society.