Corporate responsibility Benefits vs concerns / criticism

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Corporate responsibility

Benefits vs concerns / criticism

Potential benefits for businesses

• Human resource: Companies with CR are more likely to attract talented employees who may have increasing concerns in this field.

• Risk management: Companies with CR place priorities on safety and health, employment / consumer rights and environmental protection.

This can reduce destructive accidents which may incur government actions and public resistance.

• Brand image: CR enables companies to achieve positive reputation as it focuses on social benefits rather than only earning profits.

Criticism and concerns

• Companies with CR will encounter increased costs (purchase of pollution-process equipment etc) which will reduce profitability.

• In countries where public attention is drawn primarily upon pure economics and laws are lax,

CR may be less helpful to achieve brand image.

• Success of companies cannot be guaranteed by

CR as there are so many constraints such as macro economy, competition and skills of managers.

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