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What does the passage indicate is the purpose of CSR-related laws in some places, like India?

1. To increase dividends for shareholders
2. To impose a baseline obligation for social reinvestment
3. To remove corporate taxation entirely
4. To limit market rivalry among companies

Correct answer: To impose a baseline obligation for social reinvestment

Solution

The passage states that in India, eligible firms must allocate a portion of profits toward social initiatives. This shows the purpose is to create a minimum obligation for social reinvestment.

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