Csr: The Proverbial White Elephant?
...Catholic University of Eastern Africa
Course: DPM 527 (Strategic Planning Techniques)
Student Number: 1014132
Table of Contents
1. Executive Summary 3
2. Introduction 4
2. The CSR Debate 6
2.1 The Business Case for CSR 6
2.1.1 CSR Boosts a Company’s Reputation 6
2.1.2 CSR Increases Innovation 7
2.1.3 CSR Increases Efficiency 8
2.1.4 CSR Increases Government and Political Support 8
2.2 Arguments against CSR 9
2.2.1 Making profits is the only responsibility of a business 9
2.2.2 CSR Is Not Profitable 10
3. CSR in Developing Countries 11
4. Beyond Rhetoric 13
5. Conclusion 14
6. References 16
1. Executive Summary
CSR can be defined as ‘a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Prieto-Carron, Lund-Thomsen, Chan, Muro & Bhushan, 2001). It is the view that businesses have a moral and financial obligation to act responsibly. This idea is immensely controversial and polarised. Advocates for CSR argue that it makes good business sense because it can increase a company’s revenues. This is mainly due to the good image that a company creates for itself as it engages in social and environmental causes. CSR also stimulates innovation as companies are forced to innovate new processes that have less negative impacts on the society. This innovation creates new business opportunities for the company, thereby increasing its sales and revenues. Furthermore, businesses that help the society may receive political and government support. This may be in the form of incentives such as tax breaks that will benefit the business. Thus, CSR can increase a company’s returns.
There are also numerous arguments against CSR. The main one is that the focus of businesses is to make...
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