ADVANTAGES SINGER (CSR)

While obtaining profit and maximizing the shareholders wealth may be the end goal for any business,
maintaining corporate social responsibility have managed to attract more investors. Corporate social
responsibility (CSR) is about managing the interactions between the employees, customers, suppliers
and stakeholders in order to produce an overall positive impact on the society while obtaining profits
(Asemah, Okpanachi & Edegoh, 2013). One of the advantages of being socially responsible is being able
to cut the costs of the company such as its operating costs. It can be in the form of reducing the
packaging material or planning the optimum route for delivery trucks that can reduce the environmental
impact. One good example is Walmarts achievements on reducing costs throughout its supply chain and
operations. During 2012, Walmart announced that company could save as much as $150 million during
the companys 2013 fiscal year due to several of its sustainability programs such as expanding waste
diversion and recycling programs, in which Walmart was able to save $231 million during the year 2011.

Another advantage of CSR is that socially responsible companies have enhanced brand image and
reputation (Asemah, Okpanachi & Edegoh, 2013). When an organization carries out corporate social
activities such as sponsoring local events or supporting local charities, people tend to show preference
on them over their competitors. These companies engaged in CSR can improve the impression of the
people about the corporate existence of their organization and therefore can build trust and stronger
relationships with their customers and have the ability to attract more investors. In September and
October 2012, 6224 consumers from Brazil, China, India, Germany, the UK, and the U.S. were surveyed
online to craft the report, Rethinking Consumption: Consumers and the Future of Sustainability and one
of its findings is that 65% believe they have a responsibility to purchase products that are good for the
environment and society. CSR initiatives can attract customers and may boost sales and profits and
increase market share.

In addition, CSR activities also promotes long term profit and provides better access to capital
investment (Asemah, Okpanachi & Edegoh, 2013). According to the study of Prof. Stephen Erfle and
Michael Frantantuono (as cited in Hartman & DesJardins, 2011), firms that has a high rank when it terms
of their records on their various social issues (charitable contributions, community outreach programs,
advancement of women e.g.) had greater financial performance (in terms of operating income growth,
sales-to-assets ratios, sales growth, return on equity, earnings-to asset-growth, return on investment,
return on assets, and asset growth).

Moreover, CSR enhanced employee relations, productivity and innovations (Asemah, Okpanachi &
Edegoh, 2013). CSR initiatives establish conditions that help companies to recruit and retain employees,
motivate employees to develop skills, encourage innovation and take advantage of new opportunities
(Asemah, Okpanachi & Edegoh, 2013). A good example of this is IBMs Corporate Service Corps program.
IBMs program enable employees to share their professional skills with a company in a developing
country. The said program was able to contribute in its employees skill development, create new
markets, attracts top talent for recruitment, sustains retention, and generate a turnover rate for the
participants of the program of 1 % compared to 12% company-wide rate. Lastly, the program also
generates a 300% ROI, which is a $600 million return on its $200 million investment on the program
(Weinreb, 2015).