Business Ethics

• Corporate Social Responsibility (CSR) is about considering the wider impact of a business’s actions on various groups
• Examples of socially responsible behavior include using sustainable materials and donating a percentage of profits to charity
• Being socially responsible can be a unique selling point, attract staff, improve recruitment and retention, and make it easier to raise finance

Corporate Social Responsibility (CSR) refers to considering the wider impact of a business’s actions on various groups, including employees, customers, society, and the environment. Examples of socially responsible behavior include using sustainable materials and donating a percentage of profits to charity. Being socially responsible can be a unique selling point, differentiating a business from competitors. Companies like Innocent Smoothies and Marks and Spencers have used CSR as part of their marketing strategies. Being socially responsible can attract and motivate staff, leading to improved recruitment, retention, and motivation. It can also make it easier to raise finance from investors. However, there is a trade-off between ethical behavior and profit, as CSR can increase costs. These costs may arise from sourcing sustainable materials, updating machinery to reduce pollution, or training workers. This can eat into profit margins, leading to reduced dividends for shareholders and potentially higher prices for customers. It can also make a business less competitive compared to unethical rivals. Overall, while there are challenges and trade-offs, embracing CSR can have positive impacts on a business’s reputation, customer loyalty, and staff motivation.