Sunday, September 8, 2019
Advantages and Disadvantages of Corporate Social Responsibility Essay
Advantages and Disadvantages of Corporate Social Responsibility - Essay Example This paper illustrates that there are three CSR theories, which are interdisciplinary; utilitarian, relational, and managerial theories. Utilitarian theories emphasize on a maximization of profit, hence related to theories of competitive advantage. The managerial theory, on the other hand, has the CSR approached internally; meaning that anything exterior to the business is taken into account for the firmÃ¢â¬â¢s decision-making. The Relational theory has to do with the complex firm-environment relationships. The implication here is that the firm-environment relationships form the focus of the CRS analysis. In the CRS, business in society comes up as a matter of interplay between the two. Thus, the relational theory is value-based and interdependent between the corporation and mankind. CSR is important to both the agency and the consumers in a number of ways: for companies, it helps them create a better public image since their public image is at the mercy of their social responsibil ity strategies and how their customers are mindful of them. According to Cone Communications, 90% of the consumers would avoid doing business with corporations if there were no social responsibility plan. Studies indicate that firms heavily involved in funds and goods donation to Non-governmental and other non-profit making organizations and schools are likely to increase the likelihood of consumers buying their products. At the same time, a corporation that takes care to ensure that the primal matter used in its products are environmentally secure and the manufacturing process is sustainable is more eye-catching to the society.