Answer to Question #166483 in Management for Wilfred Mwinso

Question

"what are the implications on a compay if its fails to undertake corporate social responsibility as against sustainability"

Answer 1

Corporate social responsibility has been the means by which the public holds companies accountable for their actions. It is increasingly more essential today and can take various forms – including pro-bono work, donations, employee community service days, eco-friendly practices and more creative ways by which small and large businesses can give back to their communities.

If a company fails to undertake corporate social responsibility as against sustainability it will first suffer negative press and reputation damage. The reputation will be severely damaged through press and social media companies. Secondly, the business lacks consumer appeal. Consumers will not be interested in prioritizing the business that does not support and cause value.

Thirdly, there will be increased employee turnover. Talented professionals consider whether the company core values match up with their own when they apply for jobs. Both employee retention and satisfaction are declined. Fourthly, the company experiences weak client and community relations. Employees and community lack meaningful interactions, giving the business reduced recognition and negative associations with its potential customers.