With Reference to Your Own Research and the Item Above, Do You Think That the Ability of a Business to Act Successfully in a Socially Responsible Manner Is Mainly Determined by the Products It Produces?

947 Words Apr 29th, 2013 4 Pages
With reference to your own research and the item above, do you think that the ability of a business to act successfully in a socially responsible manner is mainly determined by the products it produces?

Corporate social responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

The level of corporate social responsibility that a firm upholds is determined, to an extent, by the nature of the businesses products. This is demonstrated by BP, despite the company actively engaging in some CSR policies, goods such as oil are inherently harmful for
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It is essential for a business of this type to implement such a strong CSR ethos as it is important to the customers. The customers who care about the environment will only buy products that are made in an environmentally friendly way, therefore it is essential for business’s that make such products to invest in CSR in order to stimulate demand, which generates sales, increases revenues and feeds into profit. The products NIKWAX LTD sells are to an extent the main influence on its successful CSR as the products wouldn’t sell as well without CSR so the business has an incentive to engage in such activates and the business would not be able to retain customers as they may switch to more CSR focused alternatives.

However contrary to the above, in some cases, the nature of a business’s products is not the main determinant of whether a business can act in a successful socially responsible manner. This is demonstrated by BAT who produces cigarettes which are considered to be bad for the environment as they create negative externalities. Surprisingly even though the business produces products that are not considered to be ‘socially responsible’, the company still has CSR principles embedded throughout the group. Some of the CSR activities that the company engages in are campaigning to tackle
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