Corporate Social Responsibility (CSR) and Corporate Social Investment (CSI) are closely connected. CSI is a part of CSR, and they both promote responsible business. That is why, when it comes to their advantages to businesses, there is hardly a difference between the two.
Thus, the benefits of CSR listed below, also apply to CSI.
What is the Positive Impact of Corporate Social Responsibility (CSR) on a Business?
- Attract employees: The company may attract more experienced employees, which could increase its productivity.
- Low staff turnover: The business can experience a lower staff turnover because it prioritizes the health and safety of its employees.
- Teamwork: CSI projects encourage teamwork among the employees of a business.
- Public image: A business can develop a good public image for looking after its employees and conducting itself in a responsible way.
- Marketing strategy: Social responsibility and social investment projects can be used as a marketing strategy to promote a company’s products or services.
- Customer loyalty: Successful CSR can promote customer loyalty, resulting in increased sales.
- Socio-economic issues: CSI projects help to solve socio-economic issues such as unemployment and poverty.
- Tax rebates: Businesses may get tax advantages such as tax rebates from SARS (South African Revenue Services).
- Less likely to be forced by government: If a company voluntarily engages in CSR, the government is less likely to force the matter on them through legislation.
- Community support: Businesses that engage in community development enjoy the goodwill and support of communities.
Exam Questions for the Benefits of CSR/CSI to a Business
When the question only asks for the advantages of CSR/CSI
- Describe FOUR positive effects of Corporate Social Responsibility programmes for businesses in your area.
- Discuss the benefits of Corporate Social Investment (CSI) for businesses.
When you are allowed to name advantages or disadvantages of CSR/CSI
- Critically assess the role of CSR in the business.
- Evaluate the impact of CSI on businesses.
- Discuss the impact of Corporate Social Investment (CSI) on R-TOYZ as a business.
Let the marks guide you. Typically, each benefit listed, in a full, descriptive sentence, counts for TWO (2) marks. If a question is out of EIGHT (8) marks, you must list FOUR benefits.
Essay questions may ask you to “evaluate the impact of CSR.” If you are preparing to write an essay on CSR, be prepared to list at least FOUR advantages and FOUR disadvantages.
Other Articles Related to This
To read the other articles related to Social Responsibility and Corporate Social Investment, you can click on the following links:
- Definition of CSR, Social Responsibility and Corporate Citizenship
- Describe the Differences Between CSR and CSI
- Real World Examples of CSI and CSR: Google and GrandWest
- Discover the Benefits of CSI to the Community
- Discuss the Disadvantages of CSR to the Community
You can download the flash cards below to help you with your exam revision. Practice answering both question cards and adding more answers if you can. You will find more on my Facebook page: Nonjabulo SA. Share them with your friends and test each other online.
1. Describe FOUR positive effects of Corporate Social Responsibility programmes for businesses in your area.
2. Discuss the impact of Corporate Social Investment (CSI) on R-TOYZ as a business.