When is it ethical and when is it unethical to use CSR as a means of marketing and hence profits? Explain

Answer the following questions under different headings please.

1. ” organizations use CSR as a strategic move to put the organization in the public light and enhance their reputation. The bottom line is more profit.”


” Scandals have arisen in organization in carrying out their CSR, by exploiting it as a profit making venture.”

The implication seems to be that use of CSR to increase profits is unethical. Can we have examples of how CSR may be or has been used as a means of increasing profits? Does not CSR reduce profits as it entails costs to be incurred by the company? When is it ethical and when is it unethical to use CSR as a means of marketing and hence profits?

2. ” For instance, in Angola ExxonMobil sponsor HIV and Malaria programmes in large dimension that have a significant and visible impact showing positive result from the last report of ministry of health in Angola. Although, Angola policy regarding corporate social responsibility law tells the companies to actively participate on social investment and philanthropy programmes. ”

The Indian story is not different, the Companies Act of 2013 lays down that a company must spend 2% of the average of profits of the preceding 3 years on CSR. The relevant provision of the Act can be scanned from the hyperlink : http://www.mca.gov.in/SearchableActs/Section135.htm . Is this not an additional tax on the companies?

If CSR is mandated by law is it really CSR? Is forced CSR really CSR? When a company is indulging in CSR only because of the force of law, is it not in contravention of some of the definitions of CSR that state that CSR involves those activities where the companies go beyond what is required by the law to contribute to the society? (Sebastiao)

Answer both questions separately in a essay format about 130 words per response. Two references with each…

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