Question

Disadvantages of CSR in the business

Answer 1

Disadvantages:

1) Cost - less money for stockholders and less money to invest back into the company for future growth

2) Fairness - The board members or head of the Social Responsibility campaign make the ultimate decision and often times let their bias and opinions affect their judgment of what is best for the company.

3) Unintended Consequences - cause taxpayers to resent their government for supplying a service that a private business also pays for.

4)Enhanced Scrutiny - company undertakes a socially responsible cause falls under increased scrutiny from  critics, customers and competitors