Pros and Cons of CSR in Relation to Organizational Behavior

Pros:

Companies that strive to benefit their stakeholders by incorporating efficient CSR policies within their organizational structure benefit greatly in many areas. By working not only to make a profit but also to benefit and support the surrounding community, overall company reputation rises. With a rising reputation and increasing competitive advantage, investors, shareholders, executives, board members, and most importantly employees are benefited. Those employees are more motivated to come to work because they know they are working for a company that both supports a good cause and strives to be the best. If the employees are happy, then the result is a healthy and productive work environment, an environment where employees are enabled to tactically work together and are also both intrinsically and extrinsically motivated. Implementing a highly functioning CSR policy in one's company also builds trust, trust among the executives/board members, the investors, the shareholders, the employees and their families, and most importantly trust with the surrounding community in which their company operates. Companies that practice efficient CSR also have, in many different forms, more organized and advanced structural layouts. Through achieving all of this, while also building trust with the stakeholders, companies are guaranteed greater success and future growth.

Cons:

While adapting an efficient CSR policy may build your company's reputation and establish stakeholder trust and loyalty, there are also downsides to consider. Typically, these companies aim at reducing their overall environmental impact, which means the purchasing of expensive equipment. These are extra costs that companies have to take into consideration when producing budget plans and drawing up future projects. If companies wish to maintain, for example, domestic production facilities and/or call centers instead of outsourcing or moving production overseas, this will ultimately result in higher costs as well. Similarly, buying from domestic producers as opposed to buying from cheaper foreign suppliers will also increase costs. In addition to these things, companies must also be prepared to face shareholder resistance. Resistance among shareholders stems simply from their desire to make a profit; if companies implement CSR policies into their business practices then they are more likely to (but not all the time) spend and lose money rather than make it, resulting in a loss of shareholder trust and future investments. Employees working in a CSR-compliant company may also be subject to stricter rules and policies that govern their everyday work which, in turn, could hinder overall employee satisfaction and stagger work motivation.