Advantages and Disadvantages of CSR
- Created by: tanja soulsby
- Created on: 31-03-17 17:44
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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
- Has costs which shareholders may see as a misuse of funds
- Advantages
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