Corporate Social Responsibility ( Csr )

1370 Words6 Pages
Business personalities, government officials, and loans are hedging more attention on the concept of Corporate Social Responsibility (CSR). The core issue is the appropriate responsibility of business. In as much as firms ought to obey the law, but beyond complete compliance with environmental laws, the question is whether firms have extra social responsibilities to commit part of their resources to environmental preservation voluntarily. This memo provides an exploratory investigation of the link between corporate social responsibility and the benefits accruing to a firm. The paper poses fundamental research questions being: what valuable and rare resource does the corporate gain through corporate social responsibility? How corporates’…show more content…
As such, it can be argued that CSR is the aggregate of the economic, legal and ethical actions coupled with the philanthropic responsibilities expected of a firm by the society.’ Firms perceived to have a strong commitment to CSR tend to have an increased ability to attract and retain their employees (Turban) which reduces turnover and retraining costs. Similarly, it is normal for employees to evaluate the CSR performance of their firm to determine the relationship between their personal values and those of the firm. Peters (40) argues that firms that improve the working environment and labor practices tend to experience increased productivity and curtailed error rates. Periodic controls in the production plants ensure that employees work in conducive environments. Though search practices might be costly, the increased productivity of the workforce and increased quality of the output generate positive cash flows that cover the incurred costs. As such, a firm can benefit from the actions of CSR in terms of worker morale and productivity (Moskowitz) N Öykü argues a firm regarded as socially responsible similar benefits from the reputation it gains within the business community through increased ability to attract capital and trading partners. However, reputation is hard to quantify making it also hard to determine how much it enhance the value of a
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