The Potential Benefits of Csr Relative to the Costs for Businesses and Their Stakeholders.

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CSR is how companies control their business processes to provide an overall positive impact on society. There are many factors that determine how socially responsible a business is, but alongside these are the benefits and costs relating to the level of CSR produced in this essay, I will be analysing companies from the retail industry and a car manufacturer to discuss the potential costs and benefits to both business and their stakeholders of CSR.
The Body Shop is well known for being an extremely ethical company. Because they do not use any ingredients that have been tested on animals, they have to pay a higher place to suppliers for these products than Primark for example, who pay an extremely low price for their stock. Because of the
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This will also help the environment that people are growing up in to become a more pleasant place to be. It also gains customer loyalty which will be a positive, especially in the long term if the car industry does deteriorate. However, the long term strategy has already taken 20 years and there is still an uncertainty surrounding how much longer this project will take to be completed. There is also the point that no other car manufacturer has ever produced a car that will only emit water vapour, so there is no proof that this is actually possible, which could prove to be a waste of time and money for BMW.
The main factor that the stakeholders of a business are interested in is the amount of profit that is produced, which can then be paid to them through dividends. If a percentage of the profits are being paid out to aid CSR in cases such as community projects, then less money is going to the stakeholders. This point makes having CSR present in a business costly.
However, there are a huge number of benefits which I feel outweigh the main cost and once major point that needs to be considered is the extremely positive reputation businesses can build up which will likely lead to customer loyalty. In the long term, this will be extremely helpful to the business in the case of the economic climate falling as the level of demand will not decrease to the extent of making a significant difference to
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