Evaluate the Relative Importance of Corporate Social Responsibility Relative to Other Corporate Objective

945 Words Feb 12th, 2013 4 Pages
Q2) “Evaluate the relative importance of corporate social responsibility relative to other corporate objective” (40 Marks)
Corporate social responsibility (CSR) is a firm’s decision to accept responsibility for its social, environmental and ethical actions. A firm’s decisions whether to adopt and rank importance to CSR should be due to a variety of reasons, like the financial stability of the company aswell as the culture of the organisation. But one definitive factor would be a firm’s corporate objectives, corporate objectives are a quantifiable statement of a business’s goals which should include measurable targets. Essay will look to examine the relative importance of CSR in relation to other corporate objectives.
Many companies
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This can be seen in the company Marks & Spencer who launched their bag for life campaign promising to reduce the wastage of plastic bags, and also presented an opportunity for Marks to charge for bags resulting in higher profits. Marks & Spencer is therefore a great example of a company who has looked to become more socially responsible and as a result improving their brand and reputation and even creating opportunities to improve profits, therefore demonstrating the relative importance CRS can have with profit maximisation. In contrast profit maximisation should always remain key as CSR in cases can only help to maintain brand value having little effect on overall profit maximisation.
In addition, another key corporate objective is market growth, to gain market growth companies invest heavily in advertising costs amongst other promotional campaign, therefore leaving many organisation questioning whether CSR is another cost which is not sure to be beneficial to the business. However supermarket giant Tesco main corporate objective is market growth, but Tesco has recently reported that targets had been underperformed, therefore CSR could be important to this objective. During times of market growth CSR can act as a USP to differentiate the company from competition, which could be why marks & Spencer received higher profits this year after launching their bag for life campaign promising to cut down on plastic bag wastage. Due a recent

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