The Potential Benefits of Csr Relative to the Costs for Businesses and Their Stakeholders.

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CSR is how companies control their business processes to provide an overall positive impact on society. There are many factors that determine how socially responsible a business is, but alongside these are the benefits and costs relating to the level of CSR produced in this essay, I will be analysing companies from the retail industry and a car manufacturer to discuss the potential costs and benefits to both business and their stakeholders of CSR. The Body Shop is well known for being an extremely ethical company. Because they do not use any ingredients that have been tested on animals, they have to pay a higher place to suppliers for these products than Primark for example, who pay an extremely low price for their stock. Because of the costs going out of the business, The Body Shop must sell their products for a higher price than average. However this is used to their advantage as it has created their unique selling point. To differentiate their business from all the other competition in the retail industry, having a unique selling point is absolutely vital to survive in the market they sell in and in the Body Shop’s case, this is the level of CSR they produce. Adidas also act in an ethical way by providing a lot of work for many different charities and communities. Because of the competiveness in the industry they operate in, alongside Nike who are a well known company across the world, Adidas must differentiate itself in order to be successful. One of their projects is funding the Sudhaar Community Project and this has provided 200 children with 125 schools across Pakistan, and have previously stated that ‘because our suppliers are providing us a service, they deserve the same back.’ By gaining this reputation, it persuades customers to buy their produces over others because they are treating their suppliers well and not just taking advantage of them like many other companies are doing so in the retail industry. Their CSR does not go to the extent of the Body...
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