Task and the environment as opposed to making financial

Task 2

Corporate Social Responsibility or CSR aims to ensure that
companies conduct their business in an ethical way and take notice of the
impact their business has on society, the economy and the environment. CSR can involve
a range of activities such as working in a partnership with local communities,
developing relationships with employees and customers and protecting the
environment for a sustainable future. There has been a big increase in businesses
that operate to fulfil goals devoted to society and the environment as opposed
to making financial profit.

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Adopting a CSR policy possess many benefits that apply to
any business or organization, regardless of its size or sector. Introducing a
CSR policy can help a business gain a positive reputation and increase its
brand awareness; these factors can result in a higher chance of financial
backing from investors. Investors are more likely to invest in a company that
operates ethically because ethical companies can be confided in to build
consistent and sustainable profits without the harm of any fatal mistakes that
may damages their reputation or potential. An increase in investments means
that ethical companies are exposed to better financial performances in
comparison to companies that choose not to endorse a CSR policy. Embracing a
CSR policy can also result in an increase in sales as well as customer loyalty;
a company that is viewed ethically by its consumers can be able to use their
reputation and convert it into a competitive advantage. There currently exists
a niche target audience of customers who prefer not to purchase or be
associated with companies that are not socially responsible. An increase in
sales and customer loyalty means that companies that operate inn an ethical
manner are much more likely to receive sales than companies that choose to not
abide in an ethical manner of operations. Another benefit, of adopting a CSR
policy is that companies have the ability to retain their current workforce as
well as being more likely to attract new talent externally; an increased and
motivated workforce can benefit an organization greatly. The more staff a
business has on hand, the higher the standard of customer service is likely to
be administered to them; an increase in customer service means that customers
are more satisfied, more likely to recommend the business to a friend and more
willing to spend more money there. A motivated workforce also increases the
efficiency and output of a business.

Despite the various advantages adopting a CSR policy can
bring, it could also possess some drawbacks to companies; the main drawback
being that in business