When Good Corporate Social Responsibility Is Good Business

When Good Corporate Social Responsibility Is Good Business Andrew DeGirolamo Bridgewater State University Author Note This paper was prepared for COMM 353-W01 Corporate Communication and Social Responsibility taught by Professor Amantea during the Spring Semester of 2017. When Good Corporate Social Responsibility Is Good Business Introduction Corporate Social Responsibility (CSR) can play a major role in a company’s financial situation. When a company invests in CSR, it can either bring additional costs to the company and hurt it financially or it can help the company and greatly improve its revenue. However, when studying this relationship between CSR and revenue, it is not a relationship that is easily analyzed. For†¦show more content†¦When utilized correctly, CSR is an investment with risk, but one worth taking. Calculating Corporate Social Performance Whether CSR costs a company money or earns them money can be a challenging topic to argue. There are many factors that are considered when assessing a company’s long term financial performance and its relationship between the company’s CSR and their revenue. These factors include a company’s CSP (Corporate Social Performance, or the measure of CSR), size, risk taken, economic scaling, and competition. However, there are several add itional variables that are commonly forgotten and must be considered when calculating the effect a company’s CSR has on their financial situation. RD for example has a major impact on a company’s long term economic performance, as it leads to improved knowledge and increased ingenuity on the company’s operations and products. Positive returns on RD investments can lead to increased shareholder returns and increased profits. Industry advertising intensity is also a variable that is often omitted, but must be included in this calculation. This accounts for any industry entry barriers. 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