CSR - Conflict Between Ethical Behaviour And Profit Maximisation

Question 1

Benefit 1

Answer 1

Used as marketing strategy to boost corporate image

- differentiates the business - price inalastic - higher profit

Question 2

Benefit 2

Answer 2

To protect corporate image

• reduce damage caused by bad publicity
• Lead to savings in terms of advertising needed with bad publicity

Question 3

Drawback

Answer 3

Higher production costs, lower profits

If higher prices, less competitive maybe less sales if price elastic

Question 4

Judgement

Answer 4

More important for some
Eg Disney/Oil companies

Some unaffected (apple)

Question 5

Define ethical behaviours

Answer 5

Following a code of practice that embodies positive moral values