Corporate Social responsibility advantages and disadvantages
Corporate Social Responsibility makes a company socially accountable. An organization can impact various aspects like environment, the people, workers and the political scenario of a nation. The organization has to respect these effects. Every Individual has a social responsibility. Every society has social responsibilities. The same holds true for Corporate/ Organizations.
Advantages of Corporate Social Responsibility
- Ethics and values – The motto of any organization is to make profits, however it is important to adhere to ethics and follow some code of conduct. It is the duty of the organization to give back something to the employees or the society or the place where the organization is situated. It could be as simple as renovating a school near the premise of the company.
- Positive impact on people – Any good deed has a positive impact on people. It gives good marketing value to the brand.
- Inspiration – A big organization involving in good work can inspire an entire community. It also inspired other organizations to take up noble deeds.
Disadvantages of Corporate Social Responsibility
- Cost – Operational Cost could go high. Big corporates can afford budget for CSR however it is not the same for smaller companies.
- Eye wash – People are used to eye washing. For instance, a manufacturing company could let out its waste in a nearby lake and plant trees in the vicinity as a part of CSR. This hypocrisy is easily identified by people.