Benefits Of Corporate Social Responsibility
According to Mc Williams and Siegel, corporate social responsibility is the actions that appear to further some social good, beyond the interests of the firm and that which is required by law. Corporate Social Responsibility means going beyond obeying the law. However Waddock defines …show more content…
Advantages of Corporate Social Responsibility!
Affluence consumers can afford to choose the products they buy and are more likely to pay a premium for a brand they trust . a poorer society. in need of work and inward investment , is less likely to enforce strict regulations and penalise organisation that might otherwise take their business and money elsewhere . affluence matters . increasing affluence an a global basis will make Corporate Social Responsibility matter more in the future . !
2. Improved company Reputation !
Embracing a policy of Corporate Social Responsibility paired with real action , can serve to build or improve the reputation of a business a Corporate Social Responsibly improves the company’s accountability and it’s transparency with the media , stakeholders , local communities and investors . according to a study conducted by the branding company Landor associates and cited by the university of pennsylvanian’s Wharton school , 77 percent of consumers think that companies should be socially responsible (PUT REFERENCE). consumers are attracted to companies that are known in adopting Corporate Social Responsibility . a research at Tilburg university in the Netherlands revealed that consumers are willing to pay a 10 percent higher price for products they jude to be Social Responsibility(PUT REFERENCE) …show more content…
Disadvantages of Corporate Social Responsibility !
It represents one of the biggest arguments against adopting Corporate Social Responsibility as a policy . Programs to minimize environmental impact often require pricey changes in equipment or ongoing costs without any clear way to retrieve those losses . The decision to maintain domestic production facilities or call centres or to buy from domestic producers rather than outsource or move production overseas can drive up costs for a business . In addition there is no clear evidence that sticking to a policy of Corporate Social Responsibility generates a significant increase in sales or profit .!
2.Shareholders resistance - advantage!
Some lender do look to obtain stock in socially responsible corporations, the whole lender truck stock on the belief of changing a profit . while some companies that is Disney companies , Apple companies , Sony , Google , Microsoft companies have profited from Corporate Social Responsibility that adopt such policies often prove as likely to loss money.lenser may resist attempts by executives to move a company in that direction. !
3. A small business can make use os social media in order to promote its CSR policy but these will take extra time and may involve hiring new employees for this