“Corporate governance” refers to aspects of the corporation such as: A) the corporate tax rate. B) CEO compensation. C) decentralization of decision rights to union workers. D) government regulation of corporate health and safety.

a. Corporate social responsibility refers to the ethical and socially responsible behavior of businesses towards their stakeholders, including employees, customers, suppliers, and the wider community. It involves actions and policies that go beyond merely complying with laws and regulations, and aim to create value for society and the environment. b. Yes, companies have an obligation to do more than the law requires because they have a broader impact on society and the environment than just their legal obligations. As corporate citizens, companies should consider the impact of their activities on the communities they serve and the environment. Ethical behavior should be intrinsic to business activities, and not just limited to legal compliance. c. Yes, companies should report on their social responsibility activities to provide transparency and accountability to stakeholders. Reporting can help to build trust and credibility with stakeholders by demonstrating a commitment to ethical and responsible behavior. It can also help to identify areas where improvements can be made and provide valuable information to investors and other stakeholders. d. The relevance of CSR disclosures for outside investors is that it provides information about a company's performance beyond traditional financial metrics. It can help investors to evaluate a company's management practices, social and environmental impact, and the long-term sustainability of the business. This can provide a more complete picture of a company's risks and opportunities, which can help investors make more informed investment decisions.