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Advantages and disadvantages of corporate social responsibility?
Pro 1: Social Responsibility and Customer Relationships
One of the foundational elements of CSR is that it causes companies to reason beyond basic ethics to consider the benefits of active involvement in communities. In his article "The 7 Principles of Business Integrity," business strategist Robert Moment argues that 21st-century companies must prove themselves to customers to build long-term, trusting relationships. They must also get involved in the community to give back. This community connection endears your company to the local markets in which you operate.
Employees are a company's most valued asset. This is the premise of a company's obligation to this key stakeholder group with regard to CSR compliance. This means treating employees with respect and offering fair working conditions. It also means establishing fair hiring practices and promoting a non-discriminatory workplace. This improves morale within the workplace and encourages teamwork. Additionally, a writer on the As You Sow website stresses the importance of managing a diverse workplace so that you can benefit from a variety of backgrounds and life experiences.
The main reason any company would object to participating in CSR is the associated costs. With CSR, you pay for environmental programs, more employee training and efficient waste management programs. Proponents of CSR agree that any expenses to businesses are ultimately covered by stronger relationships with key customers. However, David Vogel indicates in his Forbes article "CSR Doesn't Pay" that investment in CSR programs may not necessary result in measurable financial results.
Another challenge for companies when considering CSR is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental requirements of other stakeholder groups. Some shareholders are happy to invest in companies that operate with high integrity. Others may not approve of the aforementioned expenses of operating under CSR guidelines.
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The best way to improve corporate responsibility is to hold organizations accountable for their actions. Consumers can do this by boycotting firms that don't act responsib…ly.
It's labor intensive . So when you sell your produce , you make sure that you are not in the mercy of the hands of big traders who control the price of your crop , and end… up in the red because of the high cost of salary . High cost of farm maxhineries .. Etc ...
Early 20th century, the traditional economic theory and reality of corporate behavior in order to maximize profits for the only goal the serious social problems, some far …sighted entrepreneurs and scholars have proposed a new concept of business ethics corporate social responsibility. After half a century of debate and development, corporate social responsibility is becoming clear thinking, and its theoretical essence lies in the pursuit of economic efficiency requires companies to achieve their profit targets than take on social welfare and the promotion of the general maintenance of the responsibility.
The advantages of statutory corporations are as follows:- (1)Formation: Formation of Statutory Corporations is easy. It can be easily formed by passing Special Act, either at… Legislature Assembly or at Parliament. (2) Autonomy: Statutory corporations can have its own working pattern. There is no political interference in day to day working of corporation. (3) Flexibility: Statutory corporations enjoy full flexibility in its operations. It is free to take any decision relating to capital collection. Investment, market, production, recruitment, planning, accounting & the decision once taken can be easily changed. (4)Capital Raising: Government contributes the capital at large for statutory corporations, but statutory corporations are free to collect capital from general public. (5) Quick Decisions: Quick decisions are possible because all policy decisions are taken by the Board & board can implement these decisions easily. There is no interference of government in any type of decisions. (6) Staff Members: Statutory corporations is free to have its own recruitment policy. It can recruit, promote, and transfer any employee / officer as per its requirement. (7) Economies of Scale: Statutory corporations operates on large scale & enjoy the economies of large scale operations. (8) Separate Entity: Like joint stock company, statutory corporations enjoys separate legal status. (9) Self Accounting System: Statutory corporations is free to have its own accounting pattern. It need not follow Budgetary Accounting & Audit Control of government. It is free to prepare its own budget. (10) Social Welfare: The main object of statutory corporations is to provide necessary services at a lower price. It works for protecting the interest of common people. Hence society at large is benefited. The disadvantages of statutory corporations are as follows;- (1) Difficult Formation: It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities & passing of statue. (2) Rigidity: The policies once approved, the statue once passed cannot be changed easily. It can be done by the parliament only & this is very time consuming. (3) Political Interference: Statutory corporations are subject to political interference & this affects the efficiency of the corporation. (4)Suitability: Statutory corporations is suitable only for giant size business but is not suitable for small size business. (5) Inefficiency: Statutory corporations always lacks efficiency. This is because of rigid policies of management or the government. (6) Monopoly: Statutory corporations enjoy total monopoly & private sector cannot compete with it. This encourages monopoly & defeats the motive of statutory corporations. (7) Wastage of Resources: There is often wastage of physical, capital and manpower resources in several cases.
Advantages of corporation include protected assets and heightened credibility. Disadvantages include loss of a personal touch, and ongoing expenses.
corporate governance advantages and disadvantages
In plain English, it is simply how the organization give back to the community the benefits it gained from it. There is a long answer by the wikipedia and I provided you a lin…k for your reference.
What is the importance of CSR for your business? The Internet has rapidly become the tool of choice for spreading information about companies around the world. … The thing every company fears most is becoming the target of a powerful single-issue campaign group. So, rather than wait for it to happen, it is better to take pre-emptive action in the form of environmental product development and labelling, or engaging in such ideas as codes of conduct and social audits. We have to take cognisance of the new forces in the consumer market, where the consumer-citizen is metamorphosing (gradually in countries like India) into a citizen-consumer. Cause marketing, development partnerships and environmental concerns make good business sense - particularly in terms of recycling materials, employee satisfaction and morale, building up reputational capital and as a distinctive brand marketing tool. Inportance in business communication Facing continuous technological evolution and new market demands in an ever more globalised environment, CSR can help telecom companies to add value to their businesses. For example: by responding to customers' and societal needs ; by attracting, retaining or support a better employability of employees ; by developing innovative products ; by improving the quality of service, efficiency and productivity ; by enhancing their brand and reputation in the eyes of their customers, employees and other stakeholders More Useful Information you can get from www.vinayakjobs.com
I think CSR is the responsibility towards the society, your contributions towards the society and also serving the nation.
ADVANTAGES 1) shares are being sold to the general public via stock exchange, therefore there is an incentive to raise capital. 2)THere is a limited liability- if business… fail to pay off its debts, then debtors could not force them to sell their private possessions. 3)the load of work is being divided among the shareholders DISADVANTAGES 1) Accounts of the business would not be kept secret. for example Accountant could know about the company's trading methodology. 2)If a company becomes too large, the chances of bankruptcy would increase because management may loose control.
Specifically, what Sykes has done to be socially responsible spans a wide array of areas. On Sykes' Facebook, they say that their, "philanthropic efforts have become an integr…al part of our corporate culture, one that transcends both cultural and geographical borders."
The advantage of physical punishment is that it is very convincing; if you wish to inspire fear, this will do it. The disadvantages are that it is also emotionally scarring an…d may lead to life-long resentment or hatred, and in addition, it could lead to charges of child abuse if children are the object of your punishment, or charges of assault in the case of adults, if the punishment is too severe. Also charges of murder, if the punishment proves to be fatal. The events at Abu Ghraib prison in Iraq, under the Bush administration, are a cautionary tale. 8D
Advantages: you need this type organization where people come together to create something like an automobile, and not fear the loss of personal assets in case the enterprise …fails. Corporation allows to take on risks, which would not be taken by anyone personally. Disadvantage stems from that same idea of risk. Risks that corporation takes do not go away, they are more or less shared by other parties: customers, creditors, and others who deal with a corporation. There is also a legal notion that corporation is a person. And can be sued. So directors of a corporation often make collective decisions that may negatively affect the rest of society, in order to make profit for shareholders. Collectivism is a problem in corporations just as it is in Socialism. Individually directors and other officers would not make decisions they otherwise make in a corporation. So you could say incentives are different.
The advantages and disadvantages are pretty much the same, only the perspective changes. For example: A company that manufactures things in multiple countries is able to capit…alize on the cheaper sources of materials, labor, distribution, etc and in turn sell a cheaper product at a higher profit margin. However, if you happen to live in the country with higher costs, you're going to lose out. One modern example of this is out-sourcing of manufacture from the U.S. It is cheaper to procure materials from China, manufacture in Mexico and then sell in the US where people have more money (generally speaking). In this scenario, Americans spend money but only employees in Mexico and China actually make money. This causes the loss of American jobs on the production side but still takes adavantage of American economic policies to maximize profit. Great for the consumer (lower prices), great for the laborers (more money than native companies), great for the company (higher profits) but bad for American workers. Of course this is true of all transnational companies. If you're based out of Korea, but Tawainesse labor's cheaper, of course you're going to limit how many Koreans you have to higher.
There are many corporations that may not be socially responsible for a moment. Wells Fargo and other banking institutions wasn't socially responsible when they mismanaged …mortgages in 2008.
The advantages of a closed corporation include it is affordable to establish, there are very few legal complications, and the business income is often exempt from income t…ax. There are also disadvantages including a limited number of investors allowed, personal liability, and banks may require financial audits. A close corporation can't make a public offering of its stocks. The shareholders have a great deal of control over who can buy into the company. As a result, it's very difficult to gain control of a close company via a hostile takeover.
One advantage to having a corporation is the fact that it is its own entity. This means that the business managers aren't liable for their decisions.