Consumers may question the use of CSR, when firms already have so much power on the financial side of the spectrum, why do they need to stretch their power to the social end of the spectrum. Some businessmen may feel that their job is to make the firm as much money as possible while increasing shareholders wealth. Shareholders may also be unwilling to use CSR. If the firm takes a philanthropic approach, then the shareholders earnings per share would be reduced, minimizing profits rather than maximizing them. The need for corporations by society to be socially responsible could also be tough when a firm may be struggling hard to pay the bills, let alone help better the community. Smaller firms may feel the pressure of competition from larger firms to provide CSR to their communities, but being a small organization they may easily give up and focus their areas of responsibility intensely on the economic and legal areas. No one says that CSR is easy or inexpensive but the benefits can be rewarding. .
In the article, "An Overview of Corporate Social Responsibility", on the Business for Social Responsibility website (www.bsr.org) we explore some benefits to the adoption of CSR by companies. The first benefit is enhanced brand image and reputation. If consumers" see that a firm has a great reputation with it's public for being for example, environmentally cautious, they will be more likely to buy that product or service. This leads to increased sales and customer loyalty. While prices and quality remain an important factor in consumer spending, people also look at things like "sweatshop-free" or absence of genetically modified ingredients when deciding to buy or not to buy. (www.bsr.org) These features are not just seen by your typical consumer. Government officials are also consumers. With their approval of a product from a company that uses CSR, there could be a reduction in the amount of government interference within the company.
