CSR

• What is Corporate Social Responsibility (CSR)?

  The idea that businesses have responsibilities beyond profit - to employees, communities, and the environment
• Why do businesses choose to have good corporate social responsibility (CSR)?

  • Builds brand image
  • Builds consumer trust
  • May attract ethical investors
  • Motivates employees, reduces labour turnover
  • Can be a competitive advantage (especially in premium markets)
  • Helps with government regulation
• If a business has good CSR what might the business attract?

  Ethical investors
• Why can good CSR turn into a competitive advantage?

  It fosters a differentiation competitive strategy as it improves the brand and reputation of the company
• Being corporatally socially responsible may increase employee motivation and engagement
• Why might businesses choose not to focus on CSR?

  • Increased costs reduce short-term profit (short-termism)
  • May distract from core business objectives
  • Shareholders may oppose if ROI is reduced