Page 31 - BA1 Integrated Workbook STUDENT 2018

Ethics and corporate social responsibility

Corporate social responsibility

1.1 Corporate social responsibility

Corporate social responsibility (CSR) is a firm’s obligation to maximise its
positive impacts upon stakeholders while minimising the negative effects.

1.2 Advantages of CSR

Advantages include:

 attractive to customers – it enhances the company’s reputation and
can act as positive advertising

 attractive to potential employees – ethical businesses can attract
higher calibre staff

 it can save the business money – many governments will fine or
increase the taxes of businesses that cause pollution

 it reduces the risk of the organisation – there will be less chance
of adverse environmental reactions against the company.

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