Q:

What are some disadvantages of corporate social responsibility?

A:

Some have leveled criticisms against corporate responsibility, for instance claiming that the aims of corporate social responsibility are in direct conflict with the aims of social responsibility. This criticism also asserts that a corporation's responsibilities, therefore, should only be directed towards the interests of its stakeholders and investors.

These critics believe that if companies aim to maximize their profits, then they can't justify spending their money on philanthropic purposes. Some critics also claim that the money corporations do spend, whether it be on bettering their communities, funding humanitarian causes as well as other socially responsible endeavors, have a negligible effect in bettering these social causes.

Other critics assert that companies which practice corporate social responsibility are oftentimes much more concerned with promoting their brand or public image than actually providing tangible assistance to the causes. For some businesses that do genuinely help out with social causes, they still have to worry about winning over their customers. Companies that are heavily involved with philanthropic causes may be perceived as boasting of their social commitments. These businesses could suffer reduced contributions from investors as well, because they would be turning down higher profits in exchange for social investments that wouldn't provide any revenue.

Sources:

  1. nsw.gov.au

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