Question

Why defining corporate social responsibility is so elusive? What are the arguments for and against corporate social responsibility?

Answer 1

A single definition for corporate social responsibility is not possible. CSR activities usually focus on human rights, labor standards, philanthropy, being environment friendly etc. With so wide a range of spectrum of activities defining CSR remains elusive. In addition, many companies think that CSR is a costly activity which requires the company to do social service, create jobs and do philanthropy. Very few companies see it as a means of saving costs and profitability.

Arguments for corporate social responsibility

• Improves the public image and branding of the company
• Companies can meet their sustainability goals with the help of CSR
• Improvement in sales and customer loyalty
• Operational cost savings
• Easier to attract talent and retain them
• Improved savings and financial performance
• Regulatory bodies becoming more favorable to the company is indirectly following laws and regulations.of the land by doing CSR activities.

Arguments against corporate social responsibility

• Shift from profit making objective
• Increase in expenditure of the company
• Staff with limited knowledge of CSR but involved in these activities will lead overall increment in production costs
• Improper execution of CSR activities will lead to negative consequences
• Just allocating budget and preparing CSR reports is not valuable unless the activities become sustainable and profitable. To, gain profits, the CSR activities must be smart and efficient leading to cost and energy savings.