Corporate Social Responsibility
3 reasons why business should engage in CSR:
1. One of the most recognizable benefits is that it provides product/brand differentiation. When there are so many companies all attempting to do the same thing, engaging in CSR can help differentiate a company, product or brand. When a customer is deciding on a product with all else variables constant, knowing a particular organizations engages in CSR, can help them decide in favour of that company.
Attracting talent. One of the main attractions for a future employee is the reputation of the company. When companies are engaged in CSR, they strengthen their appeal as attractive and responsible employee.
3 reasons why business should not engage in CSR:
1. Companies appear to have CSR on one hand but usually at the expense of something else. For example Toyota builds much of its image by having hybrid cars. However, there SUV are the highest selling and at the same time one of the most fuel guzzling vehicle.
2. Often is used as a cover up. If negative ideas are being generated and perceived by the public, CSR is often used to replace those notions with positive images of the company. For many companies it is there PR as it is easier to change the minds of people then to actually change their flawed behavior.
3. Corporations treat CSR as an expense. CSR has emerged largely due to a reaction to external pressure to improve the company’s reputations. For companies that have the notion of CSR simply being an expense, they can easily drop their CSR commitments when they are faced with financial troubles.