Corporate Social Responsibility And A Company

1926 Words8 Pages
What is Corporate social responsibility (CSR) to a company? what is the relationship between CSR and profitability to a company? According to the class material I have learned CSR is not only companies do with their profits, but also how they make profits. It goes beyond philanthropy and addresses how corporation manage their economic, social and environmental impact, as well as the relationship with the customers, supply chain, and the community we live in. Corporate social responsibility promotes a vision of business accountability to a wide range of stakeholders, more than just shareholders and investors. The most important aspect of CSR is to protect the environment and the wellbeing of employees, the society and the community in general. First of all, for some corporations the CSR is not their priority, the most common reason is because the practice of CSR will increase the cost of the company and decrease the profitability of the company. According to Sprinkle and Maines (2010) the costs associated with practice CSR separated into opportunity costs, sunk costs and recurrent costs. Opportunity costs defined as any activity that could not have been undertaken due to capital and labor being bound to the CSR activity, which might result in lost revenues. Secondly, although CSR can help the company build up their positive corporate image and good corporate citizenship, for some companies the process is too slow to see the benefit side of it, and it is a time consuming
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