CIMA BA4 Syllabus B. CORPORATE GOVERNANCE - CSR and Profit - Notes ^{2 / 3}

Enlightened Self Interest

CSR can be described as a company developing policies on issues such as how to support the local community and charities to ensure it plays a positive role in its local area.

Enlightened Self Interest

This is an argument that explains why a company being socially responsible will ultimately fulfil their responsibility of making profit for shareholders.

The arguments are:

Corporations perceived as ethically sound are rewarded with extra customers, therefore extra profit.
Corporations which are ethically unsound are boycotted.
Employees are more attracted to work for, and are more committed to socially responsible companies.
Voluntarily committing to social actions and programmes may hinder legislation and allow more independence from government.
Positive contribution to society may be a long-term investment in a safer, better educated and more equitable community creating a more stable context in which to do business.