Passage Reading and English Comprehension

The governance of financial institutions is an important policy area. By governance, we mean the running of the company by a controlling party; usually by managers, directors or shareholders. The 2008 financial crisis highlighted several failings in the governance of financial institutions. For example the failure to understand the wide reaching effect of their actions. In addition to this high level of remuneration, corporate greed and excessive risk taking have all been noted as factors in the collapse of several previously leading financial institutions. While these failures are varied, the key criticism of the current style of governance is an inability to learn from past mistakes, leading to the repeat of this cycle of failure.

1447. Which of the following option is not listed as one of the failures of those governing financial institutions?

	(a) An inability to learn from their past mistakes
	(b) The taking of too many risks
	(c) Corporate social responsibility
	(d) Greed

Corporate social responsibility, also known as 'CSR' is a term used to describe a qay in which companies conduct their business. It is the view that the profitability of the business should be considered in-line with values such as honesty, fairness and transparency so as to benefit the society they exist in. Other terms for this school of thought include 'business ethics' and 'sustainability'/

CSR proposes that the actions of companies can have such wide reaching impact on the surroundings that they have a responsibility to conduct their business in a responsible manner. For example, their actions can have an effect on employees and their families to the economy as a whole

1448. Which one of the statements below correctly completes the following sentence? Corporate social responsibility, also known as CSR, proposes that...

	(a) Businesses have a sresponsibility to make profit
	(b) Businesses have a responsibility to their shareholders and directors
	(c) Businesses have a responsibility to the environment
	(d) Businesses should act in a responsible and ethical manner

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Detailed Solution

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