B3 Promoting business ethics and CSR policies
The benefits and drawbacks of applying business ethics and CSR in different types of organisation, including sole traders, plcs and multinational corporations.
Financial benefits:
financial performance, e.g. increased sales volume and value, profitability, liquidity, efficiency share price and company value
access to loans and grants
ability to charge premium prices
risk reduction.
Non-financial benefits:
improved customer loyalty and retention, positive brand image and social media profile
enhanced HR practices, including recruitment, motivation and staff retention
quality kite mark recognition and assured standards, and the impact on best practice promoting organisational change.
Drawbacks of applying business ethics and CSR in different types of organisation, including sole traders, plcs and multinational corporations, including:
opportunity cost implications of implementing policies in relation to the business objectives of large and small businesses
impact on business strategy, e.g. distraction from core business objectives
cost versus benefit analysis of CSR, e.g. membership costs and recognition costs of professional bodies, monitoring costs, administration costs, additional direct and indirect staffing costs, including training costs, public perceptions of ‘green washing’.
