To what extent does Corporate Social Responsibility beneficial to a company’s performance?
Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by
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What these agents considered may be the money they could make, rather than the fact that many of their customers needed this sum of money to maintain their living. In consequence, some of the retired elderly lost their principal, being enmeshed in a state of depression. Businesses need “a license to operate” and they need public acceptance. To secure and maintain these, they must abide by laws and regulations governing their operations, and they must conduct their work in a manner that fosters public trust. When this public trust is violated, whether deliberately through negligence or unintentionally, companies often lose their capacity to thrive or even survive. (Gloria Jumamil – Mercado, March 2007). After this incident, the reputation of these commercial banks is declining. Less people believe in the agents of these commercial banks who are selling the market products. So, people tend to invest less money on these products. And the company’s performance is indirectly affected by this incident. From the aforementioned parts, it is known that business should show some extent of CSR to the society. But a balance should be struck between the extent of CSR and the profits enjoyed by the owners and the shareholders of the company. The extent of CSR is actually depends on different