Question

What is the relationship between the social responsibility of a corporation and its competitive advantage? Enhance your answer with Example

Answer 1

Social responsibility of a corporation is to work for the betterment of communities with which it works, to care for the environment by replenishing the reosurces it consumes and work for the common good for all stakeholders which include the customers, employees, suppliers, lawmakers and governance. The social responsibility makes an organisation stand out from the rest, by building a goodwill among the stakeholder communities. an organisation which is considerate to the society, cares for environment and peoples' well being is regarded well by all. Its products and services are more  likely to be purchased by the customers, the government, lawmakers and independant opinion makers are more likely to have a positive image of the company, because of which, it might get good deals in from banks or governments. It is less likely to be sued by one of the stakeholders, thus reducing the legal costs, and it is more likely to have cordial and mutually beneficial alliances with other businesses. Each of these points ( goodwill, profitability, favourable terms and no bad blood)  add to the competitive advantage for the company.