Proposal For Term Paper: Ethics and Public Policy
Proposal For Term Paper: Ethics and Public Policy
Project Title
Corporate Social Responsibility (CSR) and Profits
Research Question
What is the relationship between CSR and profits of a company?
Introduction
Corporate Social Responsibility (CSR) is an action taken by a company towards a social good, beyond
its own interests. CSR shows ethical and moral stand of the company creating a positive impact on
the society and people.
CSR gained popularity in 1960s and is used by most companies. Ideally, CSR is a way of exhibiting
that a firm supports a social cause which goes its profit making interests. It can be argued that since
many firms follow CSR in the competitive business environment, there has to be some relation with
the bottomline (profits) that the firm makes by doing CSR activities. There has been an ongoing
debate with the relationship between CSR and financial performance but comparing and relating
growth to abstract variables is indeed a difficult task.
Literature Review
There have been studies before trying to compare the impact of CSR but different studies have
shown differing results. There had been some flaw in the empirical analysis in the previous studies.
One study claimed CSR has neutral impact on the financial performance. But since most companies
do it, there has to be a positive relation between the involved variables. CSR promotes respect for
the company in the marketplace leading to higher sales, employee loyalty and attracts good talent
for the company.
Argument
CSR increases the profits of the company.
Methods
Case studies
Annual reports of the companies
Previous Studies
Interviews with company personnel
Data Analysis, correlation (regression)
Expected Outcomes
The outcome of the study would be able to show whether there is positive or negative correlation of
extent of CSR with the profits and the study would also be exploring the actual reasons of driving
companies to do CSR.