Solved Ethics Papers

Q4(b). CSR Making Companies Profitable

Q4(b). Corporate social responsibility makes companies more profitable and sustainable. Analyse. (150 words, 10)
The main goal of a company is to make profit. Hence, any expenditure on Corporate Social Responsibility (CSR) seems to reduce the profit of the company. Therefore, companies often try to spend as less money as possible on CSR activities.
However, in the long run, CSR expenditure can make a company more profitable and sustainable due to the following:
• CSR spending on education creates better human resources for the company.
• The brand image of the company is enhanced when it does humanitarian work under CSR.
• CSR spending on healthcare improves the health of the employees and other people in surrounding areas thus improving the efficiency of the organisation.
• CSR spending increases the social and economic growth of society leading to increasing demand of their products.
• When corporates spend money on skill development of the people, they can get better-trained manpower for their company.
• If a corporate develops a harmonious relationship with society at large, it generates trust and creates a win-win situation for the company and society. (166 words)
Q4(b). CSR Making Companies Profitable
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