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**Corporate Social Responsibility (BENEFITS (People can choose your…
**Corporate Social Responsibility
BENEFITS
Improves brand loyalty
This attracts new customers through positive publicity
People can choose your company over others and employees will want to work with a company with a good CSR record
Good working conditions promote a better work ethic
Product health and safety and diversity in the workplace
Employee morale can improve and they can be more motivated to stay in the company
General public as a stakeholder can be happy if the business behaves ethically, can result in word of mouth promotion
Businesses depend on society for public image, employees and financial aid i.e. people investing in an ethical business
Reduces waste and carbon emissions
DRAWBACKS
CSR has costs which shareholders may see as a misuse of funds
Shareholders may withdraw their investment or pressure firms to stop CSR activities
Costs may be passed on to customers
Most customers are prepared to pay extra for a company being more socially responsible, however if the market is
price sensitive
, sales will fall
Stakeholders and Shareholders
Businesses traditionally concerned with profits
Now they are concerned with balancing stakeholders needs with those of the shareholders
Profit is still key - survival of the business is in stakeholder interest, however, can be difficult to take into account the needs of all stakeholders
If a business has said they will invest for 5 years into a school but their profits fall, keep stakeholders happy or behave ethically?
The expectation of CSR on small businesses is a disadvantage. They may not have funds or be able to employ someone to organize CSR activities
CSR should be integrated in a companies operations and strategy
Ignoring them = long term damage to profits and reputation, customers will choose more CSR responsible companies
Government analyses businesses energy usage and emissions - Energy Savings Opportunity Scheme - forces businesses to consider environmental impact when making decisions
Mc Donald's Planet Champion Programme trains employees to reduce impact of the company.
M&S work to ensure their suppliers employee's have good working conditions. They agree with standards and visit sites to work with them to improve conditions
To go further than what is expected by law to help society, workforces quality of life and the environment