Zeus Enterprises, a cloud$-$computing firm, has recently implemented a unique compensation structure for its executives. A portion of executive compensation is now tied to the company$$s performance in achieving specific corporate social responsibility $($CSR$)$ goals related to reducing electronic waste and promoting digital inclusion in underserved communities. Based on your understanding of CSR contracting and its impact, how would you evaluate the potential effectiveness of Zeus$$s approach to executive compensation?

Multiple Choice

Strong. Tying executive compensation to specific CSR goals demonstrates a commitment to ethical practices.

Moderately strong. Linking executive compensation to CSR goals might lead to short$-$term focus on compliance rather than meaningful impact.

Weak. The CSR goals are too broad and not directly linked to the company$$s operations.

Moderately strong. CSR contracting might lead to conflicts of interest between executives and the company$$s CSR objectives.