Google, the company with the most appealing work environment has placed a strong emphasis on their social responsibility program ranging from employee empowerment to fighting human trafficking and child abuse. Google aims to empower their employees by providing freedom to make decisions and take risks as the corporation believes that “innovation starts at home” (Google, 2015). Google doesn’t only offer usual extrinsic benefits such as insurance and health care, it also provides flexible working hours and enjoyable working environment to its employees. According to Welch and Welch (2008), Google encourages their employees to use one day a week to discover project that interests them. Hence this does not only promote creativity and innovation within the organisation, it also empowers employees by providing opportunities to learn and grow. As a result, Google expands their intellectual capital and creates an innovative organisational culture which allows Google to stand out out from the crowd as intellectual capital and organisational culture cannot be imitated. (Smith, 2013; Watkins, 2013).
Third, CSR enables organisations to establish their legitimacy and boost reputation. Legitimacy and reputation must be maintained because organisations’ profitability in the long-run depends on the way t...
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...he first business case against CSR is that CSR initiatives do not improve organisations’ financial performance. Vogel (2008) argues that organisations with remarkable CSR performance may not be more profitable than its competitors with ordinary CSR performance. Consumer are also less likely to reward organisations with socially responsible products because good and services are to be purchased on the basis of price, convenience and quality (Vogel, 2008; Trudel & Cotte, 2009; Peloza&Shang, 2011). Therefore, there is weak evidence to support the positive link between CSR and financia performance (Cochran & Wood, 1984). For example, althought Costco provides much better remunerations for its employees but Costco has yet to be more profitable or successful than its competitors such as Wal-Mart (Cascio, 2006). Besides that, CSR initiatives do not help to prevent financial
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