The goal of every firm is to maintain viability through long-run profitability. Until all costs and benefits are accounted for, however, profits may not be claimed. In the case of corporate social responsibility (CSR), costs and benefits are both economic and social. While economic costs and benefits are easily quantifiable, social costs and benefits are not.Managers therefore risk subordinating social consequences to other performance results that can be more straightforwardly measured.
Corporate Social Responsibility and Profitability: The idea that business has a duty to serve society in general as well as the financial interest of stockholders.
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A firm’s engaging in social actions in response to some popular social need, is called social responsiveness.
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