Advantages And Disadvantages Of Corporate Social Responsibility

Abstract

The following research paper will be highlighting on the aspects of

What is CSR?

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or responsible business)[1] is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and national or international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."[2][3] CSR aims to embrace responsibility for corporate actions

They argue that the reputational benefits that CSR companies receive (cited above as a benefit to the corporation) demonstrate the hypocrisy of the approach.[72]

Misdirection

Another concern is that sometimes companies use CSR to direct public attention away from other, harmful business practices. For example, McDonald's Corporation positioned its association with Ronald McDonald House as CSR[73] while its meals have been accused of promoting poor eating habits.[74]

Controversial industries

Industries such as tobacco, alcohol or munitions firms make products that damage their consumers and/or the environment. Such firms may engage in the same philanthropic activities as those in other industries. This duality complicates assessments of such firms with respect to CSR.[75]

Stakeholder influence

One motivation for corporations to adopt CSR is to satisfy

Literature review

CSR also encourages the fame of the business enterprises. Ot is a certain that activities which are related to CSR has more priority in the creation of various forms of fame value and reputation of the company which was dissimilar to customers. It was through the pesrception of customers towards these value that can arbitrate the relationship between a company’s CSR activities and its succeeding presentation in finals.

It is also according to this author that it can be established that CSR increases a business profitability ratio, because increase in the loyalty of clients, lower risk in reputation during crsis and willingness of paying the debt. The inheritment of CSR by business organization is beneficial because it results in better financial performance by the company, increased customer loyalty and sales………………………………………………………………………….

Milton Friedman and others claimed that a firm's purpose is to maximize returns to its shareholders and that obeying the laws of the jurisdictions within which it operates constitutes socially responsible