Which CSR strategy is associated with responding to external pressure and potential government intervention?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which CSR strategy is associated with responding to external pressure and potential government intervention?

Explanation:
External pressures from society and regulators drive a company to adjust its practices. Accommodation is the strategy that fits this by implementing CSR actions in response to these external demands, often to maintain legitimacy and avoid stricter government intervention. It means the organization accepts and responds to expectations—compliance with regulations and public concerns—without trying to lead change or deny the concerns. Proactive would be about predicting issues and driving change ahead of demands, defence would resist or shield the company from outside pressure, and reactive would respond after concerns have emerged without ongoing engagement. Accommodation sits precisely where external pressure prompts concrete actions to align with social expectations and regulatory requirements.

External pressures from society and regulators drive a company to adjust its practices. Accommodation is the strategy that fits this by implementing CSR actions in response to these external demands, often to maintain legitimacy and avoid stricter government intervention. It means the organization accepts and responds to expectations—compliance with regulations and public concerns—without trying to lead change or deny the concerns.

Proactive would be about predicting issues and driving change ahead of demands, defence would resist or shield the company from outside pressure, and reactive would respond after concerns have emerged without ongoing engagement. Accommodation sits precisely where external pressure prompts concrete actions to align with social expectations and regulatory requirements.

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