In the same way that Coca-Cola used CSR to strengthen risk management, fast food restaurants are now offering "carb-conscious" alternatives to their otherwise unhealthy products. Conclusion Furthermore, pushing business practice from ethical responsibility into the higher realm of discretionary responsibility is proven not only beneficial for society, but profitable for business as well. Friedman's motto "the business of business is business" can become counterproductive as it may cause managers to focus excessively on short-term performance, thus neglecting the broader issues and opportunities, such as societal trends, trust of customers, investments into innovation and other growth prospects that will solidify company success long-term.
However, I support the opposing notion that when CSR increases cost and reduces profit, it is not a viable business strategy.
I would be hesitant to purchase items online that require credit card and personal information if the company did not have a good reputation within the community.
I believe that if a firm is committed to society and their employees, the employees will return that commitment to the firm and society will embrace the business.
I support the sensible and careful execution of CSR whereby accountability and wise stewardship are an integral part.
Incorporating these values make CSR a sensible corporate strategy, beneficial for both business and society. However in 1993 when operations started in Mehdiganj, near the holy city of Varanasi, environmental issues started arising.Following complaints from villagers, politicians, environmentalists and scientists, that water supplies were drying up because of the massive quantities of water required by Coca-Cola and as such indicating that the firm was robbing the community of the areas most precious resource. This was further epitomized with the area's farming industry being devastated and jobs, as well as the health of local people, been put at risk.This essay will look more closely on the management response to stakeholders, with regards to Clarkson's principle number four; through which the organisation attempts a fair distribution of benefits and burdens."WATER is to Coca-Cola as clean energy is to BP." So declares Jeff Seabright, Coca-Cola's manager of environmental affairs (Coca Cola In Hot Water 2005).It is possible that a business might adopt CSR practices out of self-interests to pursue societal rewards as well as imitate the success of others.Many firms only begin using CSR practices after negative press surfaces.I agree with Friedman and Kerr that social goals which compromise a company's profitability are indeed disadvantageous and detrimental to social welfare in the long run.In conclusion, there are valid arguments supporting and opposing Corporate Social Responsibility.To compete successfully, companies must do more than just produce the facts and financial statements at the end of the period.The consumers, employees, shareholders and even the general public demand quality products, superior services, sound ethical standards, sustainable management of resources and community interaction.