Advantages And Disadvantages Of Corporate Social Responsibility Pdf download free software. Loader For Windows 7 Ultimate. 4/5/2016 0 Comments. Advantages and Disadvantages to Corporate.

Corporate social responsibility often requires changes to a number of processes, as well as increased reporting. In many cases, businesses hire additional personnel to manage CSR initiatives. These actions come at a cost, and opponents point out that the money spent on CSR comes directly from shareholders’ pockets. Former investment banker and current Tulane University professor, one of the most vocal opponents of the effects of CSR on shareholder profits, points out that CSR initiatives incur great cost with little measurable return. While many businesses undertake CSR initiatives with the intent of bolstering their public images, these initiatives can sometimes require a company to release information that has an opposite effect. In 2003, for example, Coca-Cola released a damaging report about chemicals found in its products as part of its CSR initiative. This report had an immediate short-term negative effects on the company's revenue, according to a peer-reviewed article published in the with sales dropping 40 percent in the two-week period following the report.

Some businesses recognize that socially responsible behavior has a positive effect on their customers’ opinions of the organization. After years of hearing how their favorite businesses care about society and the environment, but seeing little obvious involvement from these organizations, many customers have grown cynical of CSR reports. According to business watchdog agency CorporateWatch.org, consumers often see CSR announcements as. For this reason, businesses often face a considerable obstacle convincing their customers that their actions match their stated intentions.