Question

In: Operations Management

Describe corporate social responsibility (CSR). How does crafting CSR impact a company's bottom line? Assuming the...

Describe corporate social responsibility (CSR). How does crafting CSR impact a company's bottom line?

Assuming the following from company XYZ's financial statement, calculate the gross profit margins for each year (show your work). What do the gross profit margins tell you about company XYZ?

2015: Sales revenues —- $128,000. cost of goods sold = $82,000.

2014: Sales revenues —— $130,000. Cost of goods sold = $99,000.

Solutions

Expert Solution

CSR or corporate social responsibility is a strategy which or policy which companies use to make them accountable to itself, to stakeholders and to the public. It’s a self-regulating policy which helps companies to keep in check the impact they are having on the environment they are operating in. To make sure the impact is not negative on the environment. And the company is contributing positively in to its surrounding economic, social & environmental sphere.

CSR helps in building social brand for the company and also enhances its brand reputation and create positive outlook in the eyes of investors and customers which augurs well for the bottom-line enhancement. Although it is absolutely necessary that the CSR initiative are aligned with stakeholders priority and to the public perception or else the initiative aren’t worth any investment because it will come back to bite the company. Also it improves the meaningful engagement of the employees which contribute more to the organization and become more productive hence adding to the bottom-line comprehensively.

2015 Gross Profit Margin: Revenue – cost of goods sold => $128000 - $82000 = $46000

2016 Gross Profit Margin: Revenue – cost of goods sold => $130000 - $99000 = $31000

Although the revenue of the organization has improved year over year but the cost of operations has taken a toll on the bottom line which has decreased by $15000 year over year. The organization will have to tighten up its operations to show better margin in the future.


Related Solutions

Describe the current status of corporate social responsibility (CSR) as an expectation for businesses.
Describe the current status of corporate social responsibility (CSR) as an expectation for businesses.
What is corporate social responsibility (CSR)? Is the principle of CSR one that is likely to...
What is corporate social responsibility (CSR)? Is the principle of CSR one that is likely to be widely adopted by companies around the world. Is it likely to significantly change corporate behaviour? Will behavioural change benefit the public? In your answer refer to examples of companies debating CSR or implementing practices of CSR.
How does a company's code of ethics reinforce its Corporate Social Responsibility?
How does a company's code of ethics reinforce its Corporate Social Responsibility?
On the subject of Corporate Social Responsibility (CSR) (issue is that CSR is better than Firedman's...
On the subject of Corporate Social Responsibility (CSR) (issue is that CSR is better than Firedman's view of CSR and Conscious capitalism) Does CSR issues impact stakeholders in different ways? What might the views of various stakeholders be on the topic? Place the CSR issue within its historical (when) context. What is the history of the position? Has it changed?
In the _____ model of corporate social responsibility (CSR), social goals are brought into the core...
In the _____ model of corporate social responsibility (CSR), social goals are brought into the core of a firm's business model, and economic goals are balanced against social goals. ethics
Select Organizations that promote Corporate social responsibility (CSR) and answer these: •What are the CSR initiatives...
Select Organizations that promote Corporate social responsibility (CSR) and answer these: •What are the CSR initiatives the organizations are taking? •What CSR strategies are they using? •The four dimensions of CSR, how do the CSR strategies connect with them? •What are the benefits? •What are the likely disadvantages or risks to these CSR initiatives •Are the organizations considering other CSR initiatives?
Name a US-based or foreign company that practices Corporate Social Responsibility (CSR) and describe what it...
Name a US-based or foreign company that practices Corporate Social Responsibility (CSR) and describe what it is they do. Do you tend to do business with companies who support social causes that you as a consumer are in favor of? Or does this have any bearing on your purchasing decision at all?
The basic notion of Corporate Social Responsibility (CSR) is that not only the shareholders but all...
The basic notion of Corporate Social Responsibility (CSR) is that not only the shareholders but all groups of society should be given a share from earnings of corporation. Suggest any THREE (3) activities that can be carried out by an Islamic financial institution by giving a relevant example for each.
what is social contract and stakeholder theories of Corporate Social Responsibility (CSR) andexpalin use the social...
what is social contract and stakeholder theories of Corporate Social Responsibility (CSR) andexpalin use the social demandingness, social activist and stakeholder theories of corporate social responsibility in order to discuss the case study below.
What is corporate citizenship, and how does it relate to corporate social responsibility?
QUESTION 1: What is corporate citizenship, and how does it relate to corporate social responsibility? QUESTION 2: What does it mean for a corporation to be “socially responsible”? - DO NOT BE BRIEF QUESTION 3: How can companies be profitable and pursue CSR at the same time?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT