It is not enough for a business to just follow the law when it comes to ethics or unethical practices. It is necessary because incorporating ethics into a company can be done several ways such as obeying the laws of each town you do business in, articulating a purpose, and including a complete strategy, emphasize principles more than rules, and make being transparent with your constituents a part of your strategy. According to Robert Finocchio, incorporating ethics into a business strategy is effective when there is honesty and integrity. When putting ethics into a business strategy there are more questions that need to be asked such as: what is our purpose? what do we stand for and what values do we have?

The practices and policies related to corporate social responsibility and positive social change can benefit CSR by increasing customer loyalty and increase sales, having the ability to attract talent and retain staff,access is easier to capital, the financial performance is better, better brand recognition and a reputation for your business. When you have responsible policies, other companies show you favor and will not use anyone else because you are a reflection of how your customers view you and they want to deal only with responsible companies (Investopedia.com). There are also ways of saving money by reducing your business resources. Reducing your business resources can help the environment as well. If your business is willing to make the changes, the cost savings will be worth it to lower utility bills while saving money for your business (Investopedia.com).

Question

Suggest additional benefits and/or risks of having CSR and/or positive social change as part of a business strategy.