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Published byGrace Houston Modified over 8 years ago
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Corporate responsibility Benefits vs concerns / criticism
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Potential benefits for businesses Human resource: Companies with CR are more likely to attract talented employees who may have increasing concerns in this field. Risk management: Companies with CR place priorities on safety and health, employment / consumer rights and environmental protection. This can reduce destructive accidents which may incur government actions and public resistance. Brand image: CR enables companies to achieve positive reputation as it focuses on social benefits rather than only earning profits.
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Criticism and concerns Companies with CR will encounter increased costs (purchase of pollution-process equipment etc) which will reduce profitability. In countries where public attention is drawn primarily upon pure economics and laws are lax, CR may be less helpful to achieve brand image. Success of companies cannot be guaranteed by CR as there are so many constraints such as macro economy, competition and skills of managers.
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