Businesses should make more of an effort to have good CSR.

one can only hope .. I see that your argument consists of six points, therefore , i shall use six as well to be fair. My Argument: Economical : "High Costs "Damage to the global market place "Interest of Potential Buyers and Investors Social : "Greenwashing "Responsibility "False Praise This round the Economical points shall be discussed. Initially the Corporate Social Responsibility (CSR) is supposed to be a situation in which both parties benefit, where the business makes a profit and society benefits. However in the long run do the businesses really benefit ? After a plethora of their hard earned gross profits is just consumed by the so called needs of society? (High Costs) - Firstly, the costs demanded and gained by the CRS are towering. This sum of donations is given before the net profit is calculated. (net profit- profits earned after all expenses are paid). Due to the high amounts of money that is donated to these entities, such as Non-profit organizations, the profits (net) of the donating company significantly declines. Furthermore, there are small business who cannot afford to pay or to give to these bodies. Small businesses comprises of diminutive capital, usually less than $250,000 , a small sales turnover, simple technology , takes up relatively small land spaces. as well as the employment of 1-20 employees. As a result of the immense amounts of money demanded and required from the CRS, the businesses' profits will significantly decline. The small businesses may have to shut down because of the now little profits being made. These decline in profits will lead to a decrease in the revenue of the country , affecting the standard of living of the country and the Gross Domestic Product (GDP). The closure of businesses will cause an increase in the unemployment rate of the country. This will sequel in the development of the country being halted. The stagnation of the development of the country would cause it to lag behind while the rest of the word is moving forward in development. ( Damage to global market place) - Furthermore, being "socially responsible" can influence a company in the global market place. By doing acts such as cleaning up the environment, recycling, ensuring product safety as well donating time or money for welfare issues will raise the company's costs; increasing their expenses and their cost of production. These extra costs and expenses would be transferred to the consumer in the final costs of the product or service. Although some consumers may voluntary pay more for a product which is manufactured by a "socially responsible" company, most customers might not , as they look for the best quality product for a reasonable price. If the product as well as its price does not satisfy the customer then they most likely refuse to purchase the product. The company can lose valuable customers and be at an economical disadvantage. ( Interest of potential buyers and investors) - In addition to this, potential buyers and investors are not interested in how "socially responsible" an entity is when seeking to purchase or invest. They are interested in the business's cash flows, cost of sales, amounts of profits , the efficiency as well as strategic planning for marketing, economies of scale and projections for future cash flows. For example financial buyers, usually individuals or other entities, are interested in the business's cash flow . This buyer examines the financial records closely, looking for a healthy business with recorded growth and little requirement to continue successful operations. This shows that being socially responsible has little impact when it comes to business operations. Subsequently, if the business is socially responsible, the cash flows out will be greater than coming in, the cost of sales shall increase , therefore, decreasing the amounts of profits as well as it may result in diseconomies of scale. Therefore, the potential buyers and investors may lose interest as the business would not benefit them in the future. As can be seen from the above, businesses should not make more of an effort to have good CSR because of the economic reasons such as the high cost which indirectly results in the stagnant development of the country, damage to the global market place as it puts the businesses at at economic disadvantage and the interest of potential buyers and investors as they are not concerned with this. Sources : .high costs : http://dreadefoe.hubpages.com... http://smallbusiness.chron.com... .Damage to global marketplace : http://dreadefoe.hubpages.com...- Responsibility http://www.corporatewatch.org... .Interest of Potential Buyers and Investors : http://www.thoughtstorm.com... http://www.business.qld.gov.au... http://www.corporatewatch.org... ...i also used books .. : .Caribbean Business for Csesc by Mark Wilson with Patrice Bowen and Anthony Rogers .Principles of Business for Caribbean Examinations by Ivan Waterman and Dave RAmsingh i am sorry if this isn't too good ... but im looking forward for the next round :D thank you once again for this opportunity