Business Ethics and Corporate Governance, Second Edition

ADVANTAGES OF CSR

There are several advantages to corporations when they exhibit a sense of CSR and implement it. These advantages are the following:

1. Improved financial performance: Sometime ago a Harvard University study (www.risc.org.uk/read-ingroom/csr/csr_mainconcepts.pdf) has found that ‘stakeholder balanced’ companies showed four times the growth rate and eight times the employment generation when compared to companies that focused only on shareholders and profit maximization.
2. Enhanced brand image and reputation: A company considered socially responsible can benefit both by its enhanced reputation with the public, as well as its reputation within the business community, that would enhance the company’s ability to attract capital. Studies ...