Corporate Social Responsibility

Corporate social responsibility

Corporate social responsibility is a form of corporate self-regulation integrated into a business model. The idea is that company’s role is not just about producing goods, but also it has a duty to help people in society and to protect the environment. However, such system has not only pros, but also cons for a business.

Considering the advantages of CSR, this model improves the image of the company on the local and national level and in the same way it overcomes hostility to business in society. Accordingly, it increases the value of the company as well as sales volume. Besides, with this system relationship with authorities, intra-firm relationship and generally employee loyalty move to the better level. Moreover, one of the main positives of CSR is getting the attention of new investors, which obviously gives impetus to further development of business.

Turning to the other side of the argument, particularly CSR breaks the principle of profit maximization. This is based on the fact that fund for social needs appears to be expenses which are, in fact, additional in the income statement. It’s reinforced by an insufficient level of accounting and after all by the lack of skills to solve social problems.

To conclude, I’d like to say that introducing corporate social responsibility in company you should weigh up the pros of the better image, bigger profit and so on, and the cons of additional expenses and difficulty in meeting the social needs. Despite these disadvantages it’s necessary to adapt your business to society and adjust accordingly. Profound knowledge in this sphere will only improve the state of your company with CRS.