Chumps Getting Trolled

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Perspective 1: "CSR is a waste of shareholder resources." 1. It is hard for companies to communicate their efforts in CSR to shareholders and investors. Although companies have progressed from only 20% of public companies publishing CSR reports to 72% from 2011 to 2013, there are still no universal standards established for reporting CSR information. Therefore, even the best CSR efforts can lose their value simply because the efforts are not communicated to users of financial statements. This is also in part due to CSR efforts being ill-defined. While some CSR ideas are universal many of the aspects of CSR are industry specific and hard to translate into meaningful disclosures for interested parties. 2. Many CSR projects are hard…show more content…
Perspective 2: "CSR creates value for shareholders." 1. Standards for CSR are currently being created, which would allow comparability and disclosure in a uniform manner across industries. This includes guidance from the International Organization for Standardization as well as the creation of the SASB. Even the SEC has increased its requirements regarding CSR issues such as, “climate change and the use of conflict minerals” (Herz). Increasing the comparability will in turn increase the value of CSR projects due to investors being able to invest in more responsible companies as well as profitable companies. Customers would also be able to more clearly see which public companies have CSR initiatives and purchase based on this, creating value for shareholders. 2. CSR projects tend to be more long-term than standard operations for a company. This helps companies smooth out their earnings and potentially risk. In addition, part of CSR is the preservation of natural resources. While this doesn’t always directly increase the share price of stock, shareholders and the rest of the world benefit from preservation and conservation of natural resources. When companies take part in this, it reduces the liability for individuals to try to preserve natural resources (instead of externalizing them onto society). Risk avoidance includes CSR activities that “help the company avoid regulation, taxes or fines.” 3. Certain CSR projects make sense for companies from both a

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