Definition of CSR
CSR simply means doing the right thing and how the existence of one’s organisation’s can form an impact in the community. Every business organisation describe the term CSR in different ways.
Benefits of CSR A business can gained several benefits from reporting their CSR to the society. One of the main benefit that company can experience through social reporting is an increase in sales as well as customer loyalty. An increase in sales will lead to an increase in the sales revenue. What leads to an increase in the sales are the satisfaction of customers in the criteria of the products they purchase. For example, customers often demand for goods that are low in price but high in quality. Besides looking at the product, customers also often look at the ethics of the business company such as how the products are produced and supplied to them. Products that are produced …show more content…
Products of Primark are sold at a very low price. Primark is capable of selling it’s products at a low price because of economies of scale. The company purchase in large amount from the production factory in order to be able to cut down costs. When the cost of production is low, the price of the product will be low. The law of demand explained that as the price of the good falls, the quantity demanded will increase when all other things remains constant. Besides that, due to the constant change in fashion trend, many people rather buy cheap fashion clothing so that they can buy new clothing when the fashion trend changes in order to not waste a large amount of money on seasonal clothing. Therefore, demand in low price clothing will increase. An increase in the demand for clothing will lead to higher amount of sales. Therefore, greater revenue will be earned thus lead to a higher net profit. Through Primark’s financial reports in November 2014, Primark had an increase of 30% in it’s operating
CSR simply means doing the right thing and how the existence of one’s organisation’s can form an impact in the community. Every business organisation describe the term CSR in different ways.
Benefits of CSR A business can gained several benefits from reporting their CSR to the society. One of the main benefit that company can experience through social reporting is an increase in sales as well as customer loyalty. An increase in sales will lead to an increase in the sales revenue. What leads to an increase in the sales are the satisfaction of customers in the criteria of the products they purchase. For example, customers often demand for goods that are low in price but high in quality. Besides looking at the product, customers also often look at the ethics of the business company such as how the products are produced and supplied to them. Products that are produced …show more content…
Products of Primark are sold at a very low price. Primark is capable of selling it’s products at a low price because of economies of scale. The company purchase in large amount from the production factory in order to be able to cut down costs. When the cost of production is low, the price of the product will be low. The law of demand explained that as the price of the good falls, the quantity demanded will increase when all other things remains constant. Besides that, due to the constant change in fashion trend, many people rather buy cheap fashion clothing so that they can buy new clothing when the fashion trend changes in order to not waste a large amount of money on seasonal clothing. Therefore, demand in low price clothing will increase. An increase in the demand for clothing will lead to higher amount of sales. Therefore, greater revenue will be earned thus lead to a higher net profit. Through Primark’s financial reports in November 2014, Primark had an increase of 30% in it’s operating