Definition

Corporate Social Responsibility and Profitability CSR and the Bottom Line

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.

Share it:  Cite

More from this Section

  • Relational decision making
    A type of decision making in which choices are logical and consistent and maximize value, ...
  • Intuitive decision making
    Intuitive decision making refers making decisions on the basis of experience, feelings, ...
  • Strategic business units
    Strategic business units(SBUs) means the single business of an organization that are independent ...
  • Attribution theory
    Attribution theory was developed to explain how we judge people differently, depending ...
  • Agency Theory
    There is a separation of the owners (principals) and the managers (agents) of a firm, ...