While most concerns regarding corporate social responsibility are directed at corporations of very large sizes, it is known that even small and medium-sized businesses participating in environmentally problematic industries and employing a huge number of local residents can still face the pressure to adopt the policy. Most corporations provide direct financial support to organizations or individuals who require such assistance. Civil Monetary PenaltiesAll monetary penalties are to be paid to the Commonwealth. It boosts value and profitability. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere.
So basically, instead of an income, the company is effecting an outflow of cash and not fulfilling its profit-making obligations. The variety is large, and it is all due to Google that they have a greater outreach. Companies no longer have to waste money on expensive advertising campaigns. Appraisals, financial assistance in times of need, and attention given to personal achievements and special days like birthdays make employees want to remain with the company. Greenwashing Some critics believe that corporate social responsibility can be an exercise in futility. This technology will save Gigawatts of electricity. It is also observed that consumers are prepared to pay more for products that they deem to be socially beneficial and environmentally friendly.
The board members or head of the social responsibility campaign make the ultimate decision and often times let their bias and opinions affect their judgment of what is best for the company. This coincides with continued realisation that customer retention and loyalty are keys to long-term business success. If it happened that your brand has had a negative backlash that led to losses, especially due to environmental issues, this policy would be a great solution to repair reputation damage and eventually restore profitability. This includes customers, communities, employees and suppliers. However, in the remaining 24 states, the statutes are not very clear whether the corporations are allowed to make donations even if they do not benefit the firm. For example, incorporating it into the risk management systems of the organizations to identify, prevent and mitigate the potential and actual adverse effects. Because of continuous interaction with other parties, your business will be the first to know about new business opportunities.
The incident which happened in the year 2003, is a good example of this. Cost and Workload The first and foremost point which goes against implementing the social responsibility is that the cost which is required for its proper implementation is very high. These requirements state the responsibilities of the corporation towards shareholders and other stakeholder in the organization. Incentives induce efficient work out from employees. Further, at the initial stage, it requires a high labor workload. The Corporation Act and Common Law impose the power and duties on directors to act in the best financial interest of shareholders. To make sure the directors do not act negligently or misuse corporation resources for personal usage, the legal framework imposes fiduciary duties of loyalty.
Therefore, it is regarded as one of the least corrupted nations in the world. The term means that a corporation should be accountable to a community, as well as to shareholders, for its actions and operations. Compassionate attitude towards employees is highly desired by both new recruits and old employees alike. Inventing machines and techniques to reduce the harmful effects of its operational activities will give the community a clean environment. Due to this initiative, Google has seen an overall drop in power requirement by about 50 percent.
Thus, Company Y which is a competitor of Company X can operate at lower costs and turn out products more quickly. Abdullah, What Are the Disadvantages of Social Responsibility Accounting? The authorities will give fast-track preference to this company. If you keep your finger on the pulse of your community's viewpoints and needs, corporate social responsibility can work in your favor. She served as the managing editor for a small content marketing agency before continuing with her writing career. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand. Modern consumers have a healthy awareness of the role corporations play in enacting social and political change.
Business Objective Unlike public services which function to serve the public needs, the main aim of most of the private businesses is to maximize profit. They may be selling a similar product at lower rates, but you are keeping the interests of your environment and community intact, and so the people do not mind a little extra charge for this thoughtfulness. This helped her cope up with her visually unimpaired peers. About the Author Based in London, Maria Kielmas worked in earthquake engineering and international petroleum exploration before entering journalism in 1986. Employees want to feel proud of the organization they work for.
It is also likely that you will receive more job applications because people want to work for you. In fact, research shows that more than half the number of consumers around the world is now more loyal to socially responsible brands, and the number is growing fast. This increased expenditure is reflected in the increased prices of the product for which, ultimately, the customers have to pay. Normally in my blog post I promote and talk up the good things about social responsibility. List of Cons of Corporate Social Responsibility 1.