The Business Case for Socially Responsible Behavior
1. There are several reasons why the exercise of social responsibility is good business:
a. It generates internal benefits particularly as concerns employee recruiting, workforce retention, and training costs
b. It reduces the risk of reputation-damaging incidents and can lead to increased buyer patronage
CORE CONCEPT: The higher the public profile of a company or brand, the greater scrutiny of its activities and the higher the potential for it to become a target for pressure group action.
c. It is in the best interest of shareholders
CORE CONCEPT: There is little hard evidence indicating shareholders are disadvantaged in any meaningful or substantive way by a company’s actions to be socially responsible.
2. Companies that take social responsibility seriously can improve their business reputations and operational efficiency while also reducing their risk exposure and encouraging loyalty and innovation.
0 Comments