To What Extent Does Corporate Social Responsibility Beneficial to a Company’s Performance?

1187 WordsMar 14, 20135 Pages
To what extent does Corporate Social Responsibility beneficial to a company’s performance? Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by…show more content…
But for small business, the same proportion of money, it may not be the same amount of money in CSR as much as the large corporation. Husted and de Jesus Salazar (2006) found that it is wiser for the firm to act strategically than to be coerced into making investments, and that by making investments strategically they could do more than simply following altruistic motivations. It is the same in CSR. Furthermore, the extent of CSR of a company may also depends on the nature of the company. If the company is selling products that are harmful to humans and environment, such as cigarette companies, wine-selling company, they should show a greater extent of CSR to the society. Three empirical studies deal with the effect of harmful products in relation to consumers. The first study claims that both product harm and target group vulnerability, affect the perceived level of company ethics. (Terije I. Vaaland and Morten Heide, Kjell Gronhaug, Jan 2007). So, these types of company should show greater CSR to the society. But for companies that are for the good sake of the society, they can put less efforts of CSR to the society, such as companies selling organic food, solar cars. McDonald’s is selling junk food for the public which is harmful to the humans. Eating too much oil used in cooking French Fries
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