Social Responsibility of Businesses

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  • Topic: Profit
  • Pages : 1 (374 words )
  • Download(s) : 7
  • Published : February 6, 2013
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Justin Simmons
Corp Social Responsibility
Looking back at the last three years there has only been one profitable quarter. It is too early to take on such a lucrative responsibility. It would be safer to wait two or three quarters to see exactly where we are financially and how much flexibility we have. Estimating that are next quarters are just like the last with a $2 million profit pre tax. The $500,000 annual cost would be 6.25% of our total profits for the year. That is a low percentage but with since we just now made our first profit it would not be safe to assume that we will even have a profit next quarter, let alone for the entire year. We should eventually adopt the Corp Social Responsibility program but not until we have a clearer picture about how our company will look going forward. If we can make an average of at least $1.5 million per quarter before we can take on the cost of the program. In doing so the profit for the year would have to be at least $6 million for the year and the program cost would take away 8.3% of our total profit. If we have to decide right now if we are going to adopt the Corp Social Responsibility program then we should not accept. It is too risky to take one such a financial responsibility. It is too hasty to already feel comfortable with our finances when we have only had one profitable quarter in three years. If we happen to go another year without a profit then 25% of that will be gone to the Corp Social Responsibility. We should plan to fail, not be overly optimistic. It is better to be safe than sorry. If not this year we can adopt the Corp Social Responsibility next year, or the year after, so on and so forth. The biggest reason we should not adopt the Corp Social Responsibility is because our financial future is uncertain. Since we have just now had our first profitable quarter, it is best to wait until we have at least one year of profit. Until then we should not adopt the Corp Social Responsibility.
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