Corporate Social Responsibility (CSR): Disadvantages

In the previous blog I mentioned about few advantages related to corporate social responsibility. In this blog we will discuss some of the negative aspects (disadvantages) which may arise out of corporate social responsibility if not exercised in a proper manner.

Disadvantages: Though corporate social responsibility is a step taken by organizations voluntarily, but it should be with a view of serving.

1.  Companies might end up using CSR as a tool merely for seeking profits, and it replicates in their functioning and strategies. You can imagine an organization which claims at building sustainable residences in the rural area out of their profits voluntarily, and when later you discover that reality is different then the business may take a dynamic shift. (John M. Abowd,  1990).
2. Corporate social responsibility is an expensive venture. When companies take decisions  regarding corporate social responsibility it may appoint a team for developing a plan for CSR. Other than human resources, time and money which are the components of the pre-implementation process is also deployed. CSR strategy follows typical plan, do, check, act cycle. (Library, 2006)It should be taken into consideration that not all the companies can do so. That means for small companies performing CSR is a critical task.
3. I would like to extend my above-mentioned point that as not all the companies can perform CSR. It is possible that few larger companies may use it for the market share and undesired power struggle in a particular industry and business in general. Which again goes back to my first point of CSR being used as a personal tool merely for seeking profit and not of serving. (Newell, 2014).
4. Even, it leads to few market players controlling the market and which is not good from the consumer point of view. Moreover, in return such an act becomes unethical. (Crowther, 2016)  Thus, these were some of the major disadvantages which I think the organizations should avoid while undertaking CSR initiative. You are more than welcomed to provide your insights regarding the above-mentioned aspects of CSR, or any other points that you feel that needs to be added in the comments below. You may also have a look at the video posted below for more information regarding CSR disadvantages.

References:

Crowther, D. R.-B. (2016). Perspectives on Corporate Social Responsibility. Milton Park, Abingdon, Oxon : Routledge.

John M. Abowd, G. T. ( 1990). The Effects of Human Resource Management Decisions on Shareholder Value. ILR review, Sage Publications.

Library, C. E. (2006). Corporate social responsibility: implementation guide for Canada business. Ottawa: Canadian electronic library.

Newell, A. P. (2014). Corporate Social Responsibility : Challenges, Benefits and Impact on Business Performance. Hauppauge, N.Y.: Nova Science Publishers.

Image source: https://corporate.flyingtiger.com

Video source: https://www.youtube.com/watch?v=eHdvFgCG5n4