Good Corporate Social Responsibility Is Good For Business

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Good Corporate Social Responsibility is Good for Business
Introduction
Many companies question whether positive acts of corporate social responsibility are beneficial to the organization’s profitability or simply cost the company money. Although practicing good corporate social responsibility can be expensive at times, the benefits and positive outcomes outweigh the costs spent. Among many other positive outcomes, acts of corporate social responsibility have the ability to increase investor relations, can benefit a company’s long-term image, and can lead to the development of new products. Thus, good corporate social responsibility is very good for business.
Investor Relations Investors are an essential part of any company or
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Long-Term Image When companies perform good deeds such as charitable and philanthropic work within the communities it serves, consumers take notice. Such engagement in the community gives a company a competitive advantage over their competitors in the industry. Social responsibility can make one company stand apart from the rest. Consumers appreciate it when their favorite brands support their community. Consumers may also frequent a company and purchase its products because of its socially responsible activities. Companies that target the everyday consumer, not an industry or government, “have greater incentive to appear charitable in order to increase demand for their products” (Lev, Petrovits, & Radhakrishnan, 2010). There is a correlation between the company’s perceived image and the demand for the company’s products. Consumers like to support companies that act positively in the community because the consumer in turn feels like they (in turn) are supporting the community. People generally want to be good neighbors and support causes that help the world, and if a company has a well-known reputation of helping others, the consumer may be more likely to support that specific organization over a competitor. Consumers are more likely to support products and organizations that go above and beyond for the greater good, and that would thus drive
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