THE SUPERIOR COLLEGE LAHORE

Final - Term Examination

MBA/ M.Com 1dd st
Semester

Department: Business and Management Sciences

Subject: Principles of Management Marks Obtained:
Instructor: Dr. Asmat Nawaz Khattak Total Marks: 40

Name: __Sagar Karamat_____ Instructions:

Roll No: Mcow-f20-007_____ 1. No cutting or overwriting is allowed.
2. Use of mobile phone is strictly prohibited.
Date: __11/04/21___________
3. No extra time will be given.
Instructor: Muhammad
Time Allowed: Hassan
3 Hours Total Marks: 50

Answer the following questions.

1. Define the controlling function of management. Explain the four steps involved in controlling process.

2. What is corporate social responsibility (CSR)? Discuss the 4 types of corporate social responsibility, a
business can practice.

Question No # 1.

Define the controlling function of management. Explain the four steps

involved in controlling process.

Answer:

Introduction:
Controlling consists of verifying whether everything occurs in conformities with the plans adopted,
instructions issued and principles established. Controlling ensures that there is effective and efficient utilization
of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual
performance from the standard performance, discovers the causes of such deviations and helps in taking
corrective actions.

Definition:
“Controlling is a systematic exercise which is called as a process of checking actual performance against the
standards or plans with a view to ensure adequate progress and also recording such experience as is gained as
a contribution to possible future needs.”
 Controlling as a management function involves following
steps:

1. Establishment of standards

Standards are the plans or the targets which have to be achieved in the course of business function. They
can also be called as the criterions for judging the performance. Standards generally are classified into two-

a. Measurable or tangible - Those standards which can be measured and expressed are called as
measurable standards. They can be in form of cost, output, expenditure, time, profit, etc.
b. Non-measurable or intangible- There are standards which cannot be measured monetarily. For
example- performance of a manager, deviation of workers, their attitudes towards a concern. These
are called as intangible standards.

Controlling becomes easy through establishment of these standards because controlling is exercised on the
basis of these standards.

2. Measurement of performance- The second major step in controlling is to measure the

performance. Finding out deviations becomes easy through measuring the actual performance.
Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible
standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative measurement becomes
difficult when performance of manager has to be measured. Performance of a manager cannot be measured
in quantities. It can be measured only by-

c. Attitude of the workers,

d. Their morale to work,
e. The development in the attitudes regarding the physical environment, and
f. Their communication with the superiors.

It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.
 3. Comparison of actual and standard performance- Comparison of actual performance with
the planned targets is very important. Deviation can be defined as the gap between actual performance
and the planned targets. The manager has to find out two things here- extent of deviation and cause of
deviation. Extent of deviation means that the manager has to find out whether the deviation is positive
or negative or whether the actual performance is in conformity with the planned performance. The
managers have to exercise control by exception. He has to find out those deviations which are critical
and important for business. Minor deviations have to be ignored. Major deviations like replacement of
machinery, appointment of workers, quality of raw material, rate of profits, etc. should be looked upon.
Therefore it is said, “If a manager controls everything, he ends up controlling nothing.” For example,
if stationery charges increase by a minor 5 to 10%, it can be called as a minor deviation. On the other
hand, if monthly production decreases continuously, it is called as major deviation.

Once the deviation is identified, a manager has to think about various cause which has led to deviation.
The causes can be-

a. Wrong planning,
b. Co-ordination loosens,
c. Implementation of plans is defective, and
d. Supervision and communication is ineffective, etc.

4. Taking remedial actions- Once the causes and extent of deviations are known, the manager has
to detect those errors and take remedial measures for it. There are two alternatives here-
a. Taking corrective measures for deviations which have occurred; and
b. After taking the corrective measures, if the actual performance is not in conformity with plans,
the manager can revise the targets. It is here the controlling process comes to an end. Follow
up is an important step because it is only through taking corrective measures, a manager can
exercise controlling.

A sound control system is important for the following

reasons:
1. Helps in Detecting Mistakes:
A continuous control mechanism helps in detecting mistakes at early stages of performance. It saves time,
effort and money by not allowing the problems turn into major deviations at later stages. Increasing costs,
labor absenteeism and turnover, defective product samples are few of the indications that managers note at the
early stage so that production schedule is not disturbed subsequently.
2. Helps in Managing Complex Situations:
In a small-sized organization, managers can personally control various organizational activities but as
organizations grow in size, they become complex and managers cannot personally monitor all the activities.
Various product lines, markets (domestic and international), retail and wholesale outlets become so diverse
that organizational activities can be coordinated only through a formally designed control system.
3. Helps Managers Face Change and Uncertainty:
Past policies help managers make plans for future. Future being uncertain, planned objectives may not be
achieved. Changes in consumer preferences and demand, technological factors, Government regulations,
policies of suppliers and competitors can make the plans ineffective. Well-developed control systems help
managers forecast these changes and face them when they occur rather than declare the plans redundant in the
changed circumstances.
4. Helps in Monitoring the Actions of Employees:
If employees are sure of not making mistakes, actual results will always be as expected and there will be no
need for managers to monitor their activities; but it does not happen. Mistakes do occur, actions do get diverted,
wrong diagnosis of the problem and wrong decisions are also made and, therefore, control is necessary so that
mistakes do not affect the efficiency of plans and goals of the organization.
5. Helps in Identifying Potential of the Organizations:
Control system enables the organization to face challenges and changes as they occur and helps to explore
future opportunities which the organizations can venture into.
6. Facilitates Delegation:
Managers delegate authority down the scalar chain as organizational workload cannot be handled by them
alone. However, the accountability continues to vest with managers. Managers ensure that delegated tasks are
effectively accomplished by the subordinates. An effectively designed control system helps managers in this
regard.
7. Facilitates Decentralization:
Increasingly complex organizations decentralize the activities to effectively achieve their goals. Wide
geographical dispersions with respect to production, marketing and research activities make it impossible for
the control mechanism to be initiated from the head office. A well-devised control system facilitates control
of decentralized units at the operational level.
8. Coordination:
Control provides unity of direction to various organizational activities. It ensures that actions conform to plans
and there is complete synchronization between physical, financial and human resources; internal and external
environment; and goals at various levels.
9. Psychological Impact:
When employees know their actions are being watched, that is, when there is control system in the
organization, they perform better than they would in the absence of a control system. A control system related
to rewards where good performance is rewarded and poor performance is not punished creates a positive
psychological impact amongst employees and increases organizational productivity.
Techniques of Control – The Nature and Use of Managerial Control Techniques
Various methods are used by the management for controlling the various deviations in the organization. Let
us study them briefly.

Technique # 1. Statistical Reports:

These types of reports are prepared and used in large organizations. Reports are prepared in quantitative terms.
Then, the variations from standards are easily measured. In this way, control is exercised by the management.
A periodical report of sales volume is an example of statistical control reports.

Statistical analysis in the form of averages, percentages, ratios, correlation, etc., present useful information to
the managers regarding performance of the organization in various areas. Knowledge of statistics helps a
manager to describe the problem, identify and evaluate alternative courses of action, estimate error, monitor
processes and take appropriate corrective actions to achieve optimum results.

Such information when presented in the form of charts, graphs, tables, etc., enables the managers to read them
more easily and allow a comparison to be made with performance in previous periods and also with the
benchmarks.

Technique # 2. Personal Observation:

Using this technique, the manager personally observes the operations in the work place. The manager corrects
the operations whenever the need arises. This is the oldest method of control. Employees work carefully to get
better performance. The reason is that they are personally observed by their supervisor. Personal observation
is a time-consuming technique and the supervisor does not have enough time to afford personal observation.
Personal observation technique is disliked by the honest and efficient employee. The observer may be biased
in performance evaluation.

Technique # 3. Cost Accounting and Cost Control:

Profit of any business depends upon the cost incurred to run a business. Profit is maximized by reducing the
cost of operation or production, so, the business concern gives much importance to the cost accounting and
cost control. Management uses a number of systems for determining the cost of products and services. The
cost accounting procedures and methods differ from one industry to another according to the nature of industry.
They are used for effective cost control and cost reduction.

Technique # 4. Break-Even Analysis:

It is otherwise called as – ‘cost volume profit analysis.’ It analyses relationship among cost of production,
volume of production, volume of sales and profits. Here, total costs are divided into two i.e., fixed cost and
variable cost. Fixed cost will never change according to the changes in the volume of production. Variable
cost varies according to the volume of production. This analysis helps in determining the volume of production
or sales and the total cost which is equal to the revenue.
The excess of revenue over total cost is termed as profit. The point at which sales is equal to the total cost is
known as ‘Break Even Point’ (BEP). In other words, the break-even point is the point at which there is no
profit or loss.
The break-even point is calculated with the help of the following formulae:

The break-even point analysis helps in managerial control in several ways.

Technique # 5. Return on Investments:

Using this technique, the rate of profitability is identified by the management. The amount of profits earned
by the company is different from the rate of profitability of the company. The difference between the cost and
revenue is profit. The rate of profitability is the earning capacity of the company. Return on investments is
calculated by dividing the net profit with the total investment or capital employed in the business organization.

ROI= Net Return on Investment×100%

Cost of Investment

Technique # 6. Internal Audit:

Internal audit report is prepared at regular intervals, normally by months. It covers all the area of operations.
This report is sent to the top management. The management takes steps to control the performance on the basis
of the report. Internal audit report emphasizes the degree of deviations from the expectations. It is very useful
to attain the objectives on timely basis.

Technique # 7. Performance Evaluation and Review Technique (PERT):

This technique is used to solve the problem which crops up once or a few times. It is not useful in tackling the
problems which come up continuously. The PERT was developed by Booz, Allen and Hamilton. They used
this technique in Polaris Submarine Project under the sponsorship of U.S. Navy. The PERT technique is very
useful for construction projects, publication of books etc.

Technique # 8. Critical Path Method (CPM):

This technique also follows the principle of PERT. The technique concentrates on cost rather than duration.
CPM assumes that duration of every activity is constant. Time estimate is made for each activity. CPM
technique was developed by a group of employees of DU de Nemours Company.

Technique # 9. Gantt Milestone Chart:

This technique was an old one and at present, it is not in use. The reason is that this technique emphasizes only
on production scheduling but not on product quality. This technique was propounded by Henry I. Gantt.

Technique # 10. Production Control:

The production control technique is necessary for smooth functioning of an organization. Production control
involves planning of production, determination of stock level of raw materials, finished goods, selection of
process, selection of tools in production, etc. According to Spreigel, “Production control is the process of
planning in advance of operations, establishing the exact route of each individual item, part or assembly,
setting, starting and finishing dates for each important item, assembly and the finished product and releasing
the necessary orders as well as initiating the required follow up to effectuate the smooth functioning of the
enterprise.”

Technique # 11. Management Information System:

Relevant information is collected and transferred to all the persons who are responsible to take decisions. A
communication system is developed through which all levels of persons are informed about the growth of the
organization. Whenever the deviation is found, the corrective or control action is taken by the responsible
person.
The management information system emphasizes the need for adequate information in time for taking the best
decision. Thus, management information system helps the management in managerial decision-making by
giving the right information at the right time and in the right form.

Technique # 12. External Audit Control:

External audit is a must to all the joint-stock companies under the purview of statutory control. So, it is
otherwise known as statutory audit control. This type of audit protects the interests of the shareholders and
creditors of the company. The external auditor certifies that all the books of accounts are kept as per the
requirements of law and supplies all the necessary information for the purpose of audit and the balance sheet
presents a true and fair view. The external audit is conducted by the qualified auditor. The qualifications of
such type of auditor are fixed by the Central Government.

Technique # 13. Standing Orders:

Standing order covers rules and regulations, discipline, procedure and the like. Rules and regulations are
framed according to the requirements of administration. For example, no employee should leave the office
before office time without getting prior permission in writing.
Technique # 14. Budgetary Control:
The preparation of budget is also one of the control techniques followed by the management.
Question No # 2.

What is corporate social responsibility (CSR)? Discuss the 4 types of corporate

social responsibility, a business can practice.

Answer:

Introduction:
Corporate social responsibility, or CSR, refers to the belief that businesses have an obligation to society
beyond their commitments to their stockholders or investors. In addition to generating profits, companies are
expected to have some responsibility to stakeholders such as employees, customers, communities, and the
environment. CSR includes corporations being economically responsible, improving labor practices,
embracing fair trade, mitigating environmental damage, giving back to the community, and increasing
employee satisfaction.
This guide provides an overview of CSR. It is not intended to be comprehensive; rather, the goal of this
guide is to provide credible starting points for research, and to assist in further study of this topic.

Introduction of CSR In Pakistan

This study uses a literature review method to extract relevant data on corporate social responsibility (CSR)
activities among companies in the developing nations including Pakistan. The list of the developing nations
is long therefore the authors have chosen to focus on a few developing nations: India, Lebanon, Bangladesh,
and specific interest is seen to CSR in Pakistan. Nine Pakistani public and private companies have been
selected to investigate what CSR activities they are engaged with. All the nine-selected companies and their
CSR activities have been identified through the study at the companies’ websites. This study takes reflection
from the four major problem clusters of United Nations Global Compact (UNGC) principles and discusses
whether the companies working in developing nations have used and addressed CSR as promoted through
the UNGC. On their official websites of United Nations (UN), the United Nation Global Compact principles
disprove of human rights violations, violations of labor rights, corruption, and environmental degradation,
and have these as the guiding normative principles for the companies to follow in order to contribute to
solving societal problems (Compact, 2013). The main idea behind this impact is to contribute to a sustainable
and inclusive business practices (Kell, 2003). The study constructs a roadmap for implementing CSR in
publicly owned and private companies in Pakistan. A roadmap of CSR if adopted by public and private
companies in Pakistan can be a breakthrough in the field of CSR, as they can have both financial and social
benefits.
 Definitions:
“Corporate social responsibility (CSR) is a type of business self-regulation with the aim of being socially
accountable to itself, its stakeholders, and the public. “

“Corporate Social Responsibility is a management concept whereby companies integrate social and
environmental concerns in their business operations and interactions with their stakeholders.”

There is no one "right" way companies can practice CSR; many corporate CSR initiatives strive to positively
contribute to the public, the economy or the environment. In today's socially sensible environment, employees
and customers place a superior on working for and spending their money with businesses that prioritize CSR.

As the use of corporate responsibility expands, it is becoming increasingly important to have a socially sensible
image. Consumers, employees and stakeholders prioritize CSR when choosing a brand or company, and they
are holding corporations accountable for effecting social change with their business beliefs, practices and
profits.

To illustrate how critical social responsibility has become, previous research by Cone Communications found
that more than 60% of Americans hope businesses will drive social and environmental change in the absence
of government regulation. Nearly 90% of the consumers surveyed said they would purchase a product because
a company supported an issue they care about. More importantly, nearly 75% said they would refuse to buy
from a company if they learned the company supported an issue contrary to their own beliefs.

Consumers aren't the only ones drawn to businesses that give back. Susan Cooney, head of global diversity,
equity and inclusion at Symantec, said that a company's sustainability strategy is a big factor in where today's
top talent chooses to work.

"The next generation of employees is seeking out employers that are focused on the triple bottom line: people,
planet and revenue," said Cooney. "Coming out of the recession, corporate revenue has been getting stronger.
Companies are encouraged to put that increased profit into programs that give back."

Schmidt also stated that sustainable development can help a business financially. For example, using less
packaging and less energy can reduce production costs.

4 types of corporate responsibility your business can practice

Recognizing how important socially responsible efforts are to their customers, employees and stakeholders,
many companies focus on a few broad CSR categories, including:

1. Environmental efforts: One primary focus of CSR is the environment. ‫ ماحول‬Businesses, regardless
of size, have large environmental risks. Any steps a company can take to reduce its risks/hazards is
 considered good for both the company and society.

2. Philanthropy: Businesses can practice social responsibility by donating money, products or services to
social causes and nonprofits. Larger companies tend to have plentiful resources that can benefit charities
and local community programs; however, as a small business, your efforts can make a big difference. If
there is a specific charity or program you have in mind, reach out to the organization and ask them about
their specific needs and whether a donation of money, time or perhaps your company's products would
best help them.

3. Ethical labor practices: By treating employees fairly and ethically, companies can demonstrate CSR.
This is especially true of businesses that operate in international locations with labor laws that differ from
those in the United States.

4. Volunteering: Participating in local causes or volunteering your time (and your staff's time) in
community events says a lot about a company's sincerity. By doing good deeds without expecting anything
in return, companies can express their concern (and support) for specific issues and social causes.

Building a socially responsible business

While startups and small companies don't have the deep financial pockets that enterprises have, their efforts
can have a significant impact, especially in their local communities.

"Even 5%, though it might not sound like a lot, can add up to make a difference," said Schmidt. "When thinking
of ways to donate and give back, start local, and then move from there."

When identifying and launching a CSR initiative, involve your employees in the decision-making process.
Create an internal team to spearhead the efforts and identify organizations or causes that may be somewhat
related to the business or that employees feel strongly about. Contributing to something your employees are
passionate about can increase engagement and success. Involving your employees in the decision-making
process can also bring clarity and assurance to your team.

"If decisions [about CSR] are made behind closed doors, people will wonder if there are strings attached and
if the donations are really going where they say," Cooney said. "Engage your employees [and consumers] in
giving back. Let them feel like they have a voice."

Regardless of which strategies you use for sustainable development, Boynton said it is important to be vocal.
Let your consumers know what you are doing to be socially conscious.
"Consumers deserve to share in the good feelings associated with doing the right thing, and many surveys have
found that consumers are inclined to purchase a sustainable product over a conventional alternative," she said.
"Announcing these benefits is a win-win from both a commercial and sustainability perspective."

What to avoid when creating a socially responsible business model

Becoming a socially responsible business can be simple, though there are a few caveats.

First, businesses should avoid participating in charitable efforts that are not related to their core business focus
or that violate a company's ethical standards in any way. Instead of blindly sending money to a completely
unrelated organization, find a nonprofit that your company believes in or a project in your community.

Second, don't use CSR opportunities solely for marketing purposes. Schmidt said running a corporate
responsibility campaign as a quick marketing scheme can backfire if your business doesn't follow through.
Instead of employing a one-time act, you can adopt socially responsible business practices over time. Schmidt
said employees and consumers react positively to companies that embrace long-term social responsibility.

Last, if you are considering sustainable activities that aren't legally required yet, don't wait. By adopting
socially responsible norms early on, you set the bar for your industry and refine your process.

Undertaking CSR initiatives is a win for everyone involved. The impact of your actions will not only appeal
to socially conscious consumers and employees but can also make a real difference in the world.

Companies with the Best CSR Reputation

These multinational corporations have changed the way how business operates. Their CSR strategies have
helped them build a name for themselves and contribute hugely to society.

IKEA

The Swedish-house multinational group that designs furniture has been actively involved to create safe places
for children in conflict zones. Their initiatives include –

Let’s Play for Change to enable children to “play and develop, even in the most difficult circumstances.”

Brighter Lives for Refugees for which they have donated “€30.8 million to help the UNHCR bring light and
renewable energy to refugee camps across Asia, Africa and Middle East.”

COCA-COLA

Coca Cola focuses on empowering young women entrepreneurs. Their #5by20 program aims to bring 5 million
women into the company as bottlers or distributors by 2020. Their other programs are centered around
providing clean drinking water and for the development of the disadvantaged youth.
LEVI’S

For Levi’s, just one thing matters- Is the jeans contributing to water scarcity? Since the inception of
their Water<Less program in 2011, they have saved more than 1 billion litres of water. They have reduced the
usage of water for manufacturing for some of their styles by 96 percent. They have also worked to support
people with HIV/AIDS and decrease their contribution to climate change.

LEGO

The toy company has invested millions of dollars into addressing climate change and reducing waste. Lego's
environmentally conscious efforts include reduced packaging, using sustainable materials and investing in
alternative energy. Although new to this field, Lego already ranks as number 1 on 2017 Global CSR RepTrak.
Lego’s aim is to use sustainable materials in all its products and packaging by 2030. They have decided to
manufacture some of their products from plant-based plastics this year.

GOOGLE

Google is the world’s largest corporate buyer of renewable power. In 2017, they reached their target of 100
percent renewable energy in their data centers and offices. They also provide Google Ads Grants to nonprofits
to advertise for free using Google Ads.

MICROSOFT

Microsoft started its CSR initiatives back in 1983. Being in the game for a long time, they still rank as one of
the most “giving” organizations. Their Microsoft Philanthropies works with nonprofits, public and private
agencies to empower people as well as local communities.

But the most meaningful and timeless return to being socially responsible is the sheer joy and satisfaction that
comes with doing something good for the society. I think we all sleep better when we know we helped someone
smile today.

TOMS

TOMS donates one-third of its net profits to various charities that support physical and mental health as well
as educational opportunities. As of April 1, 2020, the brand is directing all charitable donations to the TOMS
COVID-19 Global Giving Fund.

Johnson & Johnson

The brand focuses on reducing its environmental impact by investing in various alternative energy sources.
Globally, Johnson & Johnson also works to provide clean, safe water to communities.

Starbucks

The global coffee chain has implemented a socially responsible hiring process to diversify their workforce.
Their efforts are focused on hiring more veterans, young people looking to start their careers, and refugees.

Pfizer:

The pharmaceutical company's focus on "corporate citizenship" is reflected in its healthcare initiatives. Some
of the company's initiatives include spreading awareness about noninfectious diseases, and providing
accessible health services to women and children in need.

The Benefits of CSR for Businesses

Deloitte says “organizations are no longer assessed based only on traditional metrics such as financial
performance, or even the quality of their products or services. They are increasingly judged…their impact on
society at large—transforming them from business enterprises into social enterprises.”

Moreover, a study shows that only 18 percent of organizations put social responsibility as a top priority, yet 77
percent say it’s “important”.

Corporate Social Responsibility initiatives benefit both the company as well as the environment (ecological
and social) in which they live in.

1. Improves Brand Value:

Being socially responsible brings recognition into the company. It shows that your company is more than just
profits. More people start knowing about your company and the good work that it is doing. Customers start
trusting your business and it builds an overall positive image of the brand.

2. Builds Customer Loyalty:

A research shows that 55 percent of consumers are willing to pay more for products from socially responsible
companies. Your customers want to feel that they are a part of something. Even if not directly, they feel good
to be part of a company with a vision and the willingness to do good.
3. Helps Attract and Retain Talent:
When employees feel they are part of an organization that is more than just about profits, they’ll definitely
want to stick around. To help them achieve this, a lot of companies are now providing their employees with
the benefit of taking time off to volunteer in their organizations of choice.

4. Increases Employee Engagement:

CSR requires employee assistance. Right from designing and developing the CSR program to actually
volunteering for a cause. So, when you include your employees in such important events, they feel valued and
appreciated. It helps improve your relationship with them, helps build the team’s dynamics and increases the
overall engagement level of the workforce.

5. It encourages customer loyalty

People are giving to charitable organizations in high numbers. To attract customers and keep their loyalty,
corporations need to pay attention to what customers care about. If a customer feels like they are living out
their values by supporting a certain business, they are more likely to stick with the brand. They’ll feel a sense
of pride when buying from the business and are more likely to recommend it. Loyal customers are the best
marketing a company can get.

6. It gives businesses a competitive edge:

Customers care about a business’s part in social issues and they will be loyal to corporations they believe align
with their values. That means corporations that cater to these customers have a competitive edge over
companies that don’t. They might offer the same products and services, but the fact that they are making
corporate responsibility a priority makes them more appealing. Drawing that distinction is essential for
marketing purposes.

7. Corporate responsibility makes employees happier and more satisfied:

Research shows that employees of businesses that prioritize CSR are happier and more fulfilled. 80% of
employees report feeling more purpose when they believe their work makes a difference in the world. That
sense of purpose is essential to employee loyalty and dedication. When personally fulfilled, people are less
vulnerable to fatigue and stress. They’re also more likely to stay with the company.

8. It makes a business more sustainable:

When a corporation decides to make corporate responsibility a focus, it needs to be more innovative and
creative. It can’t be “business as usual.” Nurturing innovation and creativity forces a company to stay relevant
and adjust according to what customers want. These days and for the foreseeable future, customers want social
responsibility. The ability to adapt is important for longevity and sustainability.

9. Customers are willing to pay more:

Corporate responsibility is great for business in a few ways. One of them is that companies can charge more
for their products and services. A Nielsen Global Survey of Corporate Social Responsibility revealed that more
than half of the surveyed customers are willing to pay more if the company is committed to corporate
responsibility.

10. It attracts more investors:

Investors care about a business’s sustainability, customer loyalty, and competitiveness. There are also many
eager to support companies that work to make the world better. Corporations that commit to social change and
are willing to adapt are very attractive to investors. Incorporating CSR is an effective way to attract socially-
minded investors as well as those thinking about long-term financial success.

11. Corporate responsibility attracts more employees:

The generations that really care about social justice and social change will make up the majority of the
workforce. 66% of people surveyed in the Nielsen Global Survey of Corporate Social Responsibility prefer to
work for companies that prioritize corporate responsibility. By embracing that, a corporation can attract the
best employees and keep them, making the business stronger.

12. Corporate responsibility can reduce costs:

Making money has been the primary goal of “business as usual,” but corporate responsibility doesn’t mean a
company sacrifices profits. In fact, it can reduce costs. Since General Mills installed an energy monitoring
system, they’ve saved millions of dollars each year. While equipment can cost a company initially, it saves
money in the long-term. When reduced costs and higher-priced products are combined, companies can make
a very good profit by being socially responsible.

13. Corporate responsibility opens up new opportunities/markets:

There are a lot of markets that haven’t been tapped into because traditional business thinking doesn’t see them
as “profitable.” With social activism on the brain, corporations can open new doors into neglected areas and
causes. In considering social impact as well as profit, corporations can find a balance and set themselves apart
from the crowd. Consumers will appreciate that a corporation is thinking about where it can help and not only
about profits.

14. Corporate responsibility makes the world a better place:

Businesses, especially big corporations, can change society in significant ways. They have a lot of influence,
so they can not only raise awareness of issues, they can play an essential role in progress. Addressing climate
change is a prime example of where corporations can take charge. By taking responsibility for their impact,
corporations can help the world become a healthier, happier place.

Name: Sagar Karamat

Roll No: Mcow- f20- 007

Thank you Sir, Azmat Khattak Sab