Chapter 2 discusses the question of whether there can be an argument for the application of CSR in the strategies of these companies. The argument is not necessarily that the application of CSR will definitely promote the bottom line of the company, but that some of those making the decisions should actually genuinely be concerned for the well-being of the greater part of society as a whole. This indicates the problem in demonstrating these types of applications.
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In regards to the question that the chapter asks, it seems that there can be a case made for corporate responsibility. The company’s image can be regarded as an underlying factor in how their company performs in the long run. For this reason, the company’s perspective concerning the good that it does can have profound impacts on how they perform overall. It seems that these performances are based in the ability to increase revenue, however, this might not necessarily be the case.
The increase in corporations advertising the various donations and charities demonstrates this growing trend in concern for public image. The application of CSR seems to create a more competitive environment for competition between businesses. This competition is promoted by the identification of the underlying factors that can lead to an increase in the ability for these companies to grow.
Research indicates, however, that this causation cannot necessarily be demonstrated. Some argue that there might not necessarily be a correlation between responsibility and profit. Instead, the correlation might be in regards to more profitable companies being responsible. This demonstrates the biggest problem with attempting to argue for the application of CSR within a company. While some responsible companies might be profitable, it is just as likely as the profitable companies are simply more responsible.
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