Arizona State University (ASU) MGT302 Principles of International Business Exam 3 Practice

Corporate social responsibility (CSR) plays a significant role in shaping the perceptions and behaviors of consumers in international business. When a company actively engages in socially responsible practices, it often enhances its brand image, fostering a positive public perception. This appears to be increasingly vital as consumers worldwide are becoming more aware of ethical business practices and are more likely to support companies that align with their values.

By committing to CSR initiatives, such as environmentally sustainable practices, ethical labor policies, or community involvement, companies can build customer loyalty. Shoppers tend to prefer brands that they perceive as responsible and ethical, leading to repeat business and positive word-of-mouth. This strong connection between CSR and consumer trust ultimately contributes to a competitive advantage in the global marketplace.

The incorrect options highlight scenarios that overlook the broader impacts of CSR. For instance, stating that CSR only reduces costs for corporations disregards the relationship between social responsibility and brand loyalty, while the assertion that CSR has no impact on consumer behavior fails to account for the growing consumer preference for socially responsible brands. Lastly, focusing solely on profit maximization neglects the contemporary view that sustainable and ethical practices can contribute to long-term profitability and success by engaging customers in a meaningful way.