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

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.