Advantages and Disadvantages of CSR

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  • Advantages & Disadvantages of CSR
    • Advantages
      • Improves brand loyalty
      • Attracts new customers
      • Positive publicity
      • People choose to work for firms with good CSR records
        • Business attracts more talented applicants
      • Employee morale with improve
        • More motivated to work and stay at the company
    • Disadvantages
      • Has costs which shareholders may see as a misuse of funds
        • Can lead to them withdrawing their investments
        • They may pressure firms to stop their CSR activities
      • Costs which may be passed on to customers
        • Customers prepared to pay more for ethical products but if a market is price sensitive or in a recession, sales will fall
      • Expectation of CSR puts small businesses at a disadvantage
        • Less likely to have funds to spare for CSR projects
        • Less likely to be able to employ someone to organise their CSR activities

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