CSR Advantages And Disadvantages Flashcards
Advantages of being socially responsible
Can help reduce costs, which can then be passed on to the consumer
Using less packaging and minimising transportation costs
Can be used in marketing campaigns
Being seen to be environmentally responsible can develop customer loyalty
Can make consumers feel they are helping less-developed countries
By initiating changes to become environmentally responsible business are made ready to deal with changes in the law than competitors.
New technologies (e.g. reducing emissions, cleaner engines) allow companies to access a growth market
Businesses may be able to access a niche market or create a new one.
Disadvantage of CSR
Some fair trade products are more expensive as consumers may prefer to buy cheaper non-fair-trade goods
Some changes may be costly as the business may have to buy or upgrade machinery and might need to pass costs on the consumers through higher prices
Environmental mistakes can effect profits and share price eg oil spill in environmentally sensitive area
If not seen to be environmentally friendly they may lose customers to competitors
Benefits of being socially responsible
CSR can be used in advertising and public relations e.g. fair trade
Fewer complaints from customers as this encourages customer loyalty
Improved competitiveness
Appealing to stakeholders
Reduced risk of receiving negative
publicity or protests against the business
