BUS-FPX4801_Assessment4-1

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Capella University *

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4801

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Business

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Jan 9, 2024

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docx

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7

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Capella University BUS-FPX4801 CORPORATE SOCIAL RESPONSIBILITY POLICY ANTI-NEPOTISM
What is Corporate Social Responsibility? Corporate Social Responsibility (CSR) allows businesses to take responsibility for their actions and while practicing CSR, the business can positively affect not only their reputation but their profit. CSR initiatives fall into four categories of responsibility; environmental, ethical, philanthropic, and economic. For the policy that will be created, I will be focusing on ethical responsibility. Corporate Social Responsibility Policy Profit Advantages & Disadvantages CSR policies can both complement and conflict with profit-maximizing goals as the stance a company takes can determine whether it will be well received or not and therefore could either positively or negatively affect profit. When a business shows a good relationship with their social environment, maximizing profits is considered and CSR can improve company profit margins. First, customers are aware of local, national, and global issues and the company they purchase from stance on these issues can influence their buying decisions. This is even more true when competing companies are showing concern and are taking positive actions over those issues. Customers will be willing to pay more to those companies which will allow them to charge more and make a bigger profit. In addition to the company's customers, the public image will be great which is important for attracting new customers and investors. CSR can attract investors and new employees while retaining their current employees because social responsibility is a part of why investors invest and employees want to work for you. Both of these pieces can also increase profit and will show how CSR can positively affect customers, stakeholders, employees, and the public. CSR policies can also negatively
affect profit-maximizing goals. When looking at things like donating to charity or using more expensive techniques to reduce pollution for example, the company’s profits may decrease as they are spending money on these things. This not only affects the company but also the stakeholders and presents a conflict as this also decreases profit for the stakeholders. Creating a CSR policy for a company can greatly enhance its reputation and public perception. For example, a company that is known for its corporate responsibility is Ben & Jerry’s. This company has made the center of their business strategy all about this. They were one of the first companies to offer employees in same-sex partnerships equal domestic benefits, they created a hiring program to employ ex-convicts and are known for speaking out on social issues. Ben & Jerry’s has shown commitment to CSR and therefore is more trustworthy to customers, employees, stakeholders, and investors. Social responsibility policies support the company’s profit, sales, and marketing efforts. They boost employee morale and happier employees lead to greater productivity which can boost company profit. This will also increase customer retention and loyalty which will positively affect sales and profit. Companies with these policies will stand out among the crowd and can be used for strong marketing and brand imaging. This will also attract investment opportunities which will add to the company’s profit. With all of these benefits of being a socially responsible company, increased profitability and long-term financial success are achievable.
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