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Does Social Responsibility in a Business Contribute to Its Profits?
Therefore, managing its social responsibilities has become a strategic priority in order to protect its reputation, market share and to operate in a way which satisfies all its stakeholders (McIntosh et al., 1998: 20). However, it should be noted that ethical behaviour is not always rewarded by a competitive advantage over companies that are not ethical as much depends on how consumers react (Graafland, 2001: 4). But, due to technological advances, which allow fast communication and the ability for investors to use electronic funds transfer to invest elsewhere instantaneously, companies are finding ethical behaviour necessary in order to maintain ethical investors
In conclusion, it was noted that the general environment has evolved and therefore recently managers have needed to change the way in which they do business. One change has been the increased usage of social responsibility in order to gain a competitive advantage.
- Does Social Responsibility in a Business Contribute to Its Profits?
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