Pros And Cons Of Corporate Social Responsibility

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There is a lot of discussion and disapproval revolving around the concept of corporate social responsibility. Some critics are against corporate responsibility, stating that the goals of corporate social responsibility are in contradiction with the goals of social responsibility. They believe that the major responsibility of a business should only be in favour of its owners and shareholders. Many businessmen and economists argue that the true and sole aim of business is to make profit for the interest of shareholders. They also state that doing anything different and outside of this objective defeat the purpose of basic business principles. Others maintain that a business should be answerable for all of its actions (whether it’s in the past,…show more content…
However, after years of hearing how their favorite companies or organizations take in consideration the welfare of the society and the environment, many customers have grown cynical of Corporate Social Responsibility reports because some realize that social responsibility is somehow a public relations campaign in disguise for these companies. Business watchdog agency states that consumers often see CSR announcements as little more than Public Relation initiatives. They are thus sceptical about the true motive behind corporate social responsibility and are unsure about whether a business is acting in favour of the community and environment. For this reason, business organizations often have a challenging and hard time to convince their customers about their…show more content…
Thus in most cases, additional employees are hired by the business organizations to supervise CSR initiatives. This procedure comes at a cost and often those opposing the concept of CSR point out that the money expended on CSR comes directly from shareholders’ pockets. Professor Elaine Sternberg who currently teaches at Tulane University (also former investment banker) is one of the most vocal opponents of the issues of CSR on shareholder profits and he indicates that CSR initiatives causes lots of expenses to be made with slight or no measurable

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