The moral case for why businesses should actively promote the betterment of society and act in a manner that benefits all of the company’s stakeholders boils down to a basic concept – It is the right thing to do.
Every action a company takes can be interpreted as a statement of what the company stands for.
The Business Case for Socially Responsible Behavior
There are several reasons why the exercise of social responsibility is good business:
· It generates internal benefits particularly as concerns employee recruiting, workforce retention, and training costs
· It reduces the risk of reputation-damaging incidents and can lead to increased buyer patronage
· It is in the best interest of shareholders
The higher the public profile of a company or brand, the greater scrutiny of its activities and the higher the potential for it to become a target for pressure group action.
There is little hard evidence indicating shareholders are disadvantaged in any meaningful or substantive way by a company’s actions to be socially responsible.