Corporate Intervention In Social Activities

1237 Words5 Pages
It is government’s job to do CSR activities and corporate should focus their attention on profit

CSR activity is often invisible. Sometimes it becomes an attempt to increase domination. It goes beyond the image management operation. CSR has ulterior and hidden motives. Several firms spend money, only if they can find any potential profit in it. They see CSR as a way to boost image of an organization. They believe that associating themselves with a cause, they may seem customer-friendly. At the end, the company benefits rather than charity.

CSR diverts attention from actual issues. This is where it is desired that government do the CSR activities. Corporate intervention in social activities helps corporations to:
• Avoid regulation
• Access
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It appeals to customer’s conscience. The company’s image as a brand is boosted as well as market for its products. A weak government combined with a dedicated CSR activity from corporate would result in social appeal and more power going into the hands of corporate. This would be a highly unbalancing factor as it would lead to company’s vested interest over common good. Therefore governments should take charge and responsibility of CSR and corporate should remain points of business and not points of power.

CSR helps companies to build their brand name. It helps them develop personal connection with customers. This would lead to creating a loyal customer base. CSR should not be an advertising channel. Contrary to government’s socialist views, corporate can create a scenario where people trust on large scale companies who have spent more on CSR activities. This leads to loss of markets for small or medium scale industries. Government should regulate and monitor the activities, introduce subsidiaries if necessary and control price.

Government should take up activities themselves and CSR projects of companies should be a support activity or secondary activity. The CSR activities should not be a tool to green-wash company image or cover up illegal acts. Saturating media with catchy and positive images and gaining public support would make it difficult for the government to keep a check on
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This requires additional cost, workforce and time.

Shareholder interests
CSR requires additional personnel to manage the initiatives. These come with a cost and shareholders would not be approving of the need to implement CSR.

Corporate reputation
Many companies project their CSR initiatives to boost their public images. This requires them to release reports regarding the activity. In several cases, it had an opposite effect when the report exposes company’s own faults in production. This leads to short term negative effects and drop in sales.

Customer cynicism
Customers are happy about their favorite businesses involved in environment friendly and socially responsible activities. But when they see little obvious participation from these firms, they get cynical of the reports. Organizations will have difficulty in convincing the customers.

Competitive disadvantages
Some CSR processes may require shift in thinking or it can make it cumbersome. Certain businesses with CSR are strict about product quality and employee well-being. These add to increase production and supply time. This gives an extra point to competitors who turn out products
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