Good for Society or Good for Business?

There seems to be two sides in choosing what is the priority that businesses should be after. There are those who see corporate social responsibility as important and there are others who see it as getting in the way of the bottom line. In a Management Report and Governance Report in 2007 Nestle claimed that it is vital  to "create value, not only for its shareholders but also for society." But there are also those like UC Berkley professor David Vogel who wrote in Forbes, "To assume that the business environment has fundamentally changed and that we are entering a new world in which CSR has become critical to the success of all or even most firms is misinformed."

So which is it? Or can it be both? Todd Thomas writes in Is Corporate Social Responsibility Good for Business? on Execdigital.com that choosing one of the other is the wrong approach. Thomas says that companies don't have to choose between return on investment or responsibility. He states, "if one assumes that business society and the greater society are intricately linked, and that the corporate world is looking for long-term success and brand enhancement, CSR is a competitive advantage."

One of the main strengths of CSR is its connection with innovation. Giving back and being innovative are what investors, consumers, and employees look for in a company and the two can go hand in hand. Partnering with other organizations, contributing a percentage of revenue, and developing employee volunteer activities are some of the innovative examples that Thomas gives as ways for a company to practice responsible business. In addition to making a positive impact on the community, these companies can make a positive impact on their own business. It can strengthen the bond employees have to the company, provide a differentiating factor between the company and its competitors, and provide beneficial public relations which can lead to future partnerships and increased sales.