So Just What is Corporate Social Responsibility?
Posted in General on July 20th, 2011If you know anything about Corporate Social Responsibility, you know that it is the hottest topic in the news these days. Many companies are now being evaluated on their ability to generate a profit, but also on their ability to provide strong social responsibility.
The problem is that Corporate Social Responsibility is determined based on what the media thinks about the company just as much as what you think about it. If you are being told that this company is responsible and being given lots of examples, of course you are going to feel that this is the case.
But if you never hear anything but how bad the company is, how are you going to know whether or not you are hearing the truth? The fact is, if a company has a bad Corporate Social Responsibility track record, it is usually just a failure of the PR team. Now that should tell you that you shouldn’t invest. If they can’t manage their PR that well, then it does matter. If they can’t manage that, how can they manage profits?
You see, Corporate Social Responsibility is not just a reflection on how the company runs. It’s a reflection on how smart it is run, too. It’s not all about the social responsibility, of course. It’s based largely on whether or not you are able to make the amount of money you want with the social decisions that that company is making.
Are you going to be looking for a company with a bad Corporate Social Responsibility record? If so, you are going to know that you are picking a company that doesn’t have enough resources or intelligence to manage their public reputation properly. So what else must they be doing wrong? Are you going to just sit back and work with something like that or are you going to get yourself set up properly in the first place?
Listen, there are a number of reasons people are looking for a way to get set up with a good business to invest in. But it’s never for feeling good about things. That’s just a ridiculous reason to get into investing. You want to make sure that you are picking a business that is going to give you the right options for making money that are based on smart business decisions. If they aren’t able to do this, you will know for sure, because they will have a bad Corporate Social Responsibility track record.
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