Topic: corporate governance.
7) Do you agree that corporate social responsibility makes companies more profitable and sustainable? Analyse.(250 words)
Ethics by Lexicon
Why this question:
The question is based on the concept of CSR and its analysis.
Key demand of the question:
Explain in detail the significance of CSR, how it itself makes the companies more sustainable and profitable in the long run.
Analyze – When asked to analyze, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.
Structure of the answer:
Begin with brief introduction on what is the concept of CSR.
Corporate social responsibility is a program under companies act 2013, under which corporates have to spend 2% of their profit amount on social service. With this service reputation of those companies will increase, in order to gain good reputation companies are competing among themselves in spending money under CSR. With this their sale/ demand for the product increase because this scheme also works like an advertise promotion, people also believe that quality of product/ service might be good and even to invest in such company’s people will come forward because of the trust they developed towards the company. It also motivates the employees of organization effectively, even govts also offer some benefits to companies, some financial institutions also provide the loans to such companies. In this way reputation converted into economic benefits of the company. This makes the company to run and gain the profits sustainably and even good will gesture of company also continues to raise.
Conclude by reasserting its significance.