essay about corporate social responsibility

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Corporate Social Responsibility

Business ownership – a view from stakeholders perspective, only a few corporations take the csr seriously, economic hard time and core business focus, role and responsibility conflict, environmental management and corporations’ profitability.

Long periods of time have seen businesses sustain success in the visibly competitive world of trade. This success is linked to good governance from the board of management, with support from the shareholders. Similarly, businesses that have performed poorly in the past are connected to the weaknesses of the boards of governors, who in one way or another failed to address specific issues that confront their business venture. The management of corporations is in most cases under the leadership of a chief executive officer (CEO), who is given the opportunity to manage the corporation by the shareholders (Mallin, 2007). The CEO reports directly to the board of directors. While the board plays a critical role in ensuring that the management and the CEO of the organization get everything right, the board is normally answerable to the shareholders (Monks & Minow, 2007, p.126).

It is noted that the test of any effective governance and management is reflected in the degree to which an organization achieves its purpose and set goals (Jensen, 1976, p.4). However, another phenomenon has emerged in the world of business where the roles of business entities have been billed to go beyond shareholder satisfaction. This is Corporate Social Responsibility (CSR) which has been linked with the responsibility of caring for stakeholders in a wider perspective of the global or regional community (Carroll, 1999). Others refer to it as corporate citizenship, with the common belief that it influences all the aspects of the business on a global or regional scale. This belief is pinned on the notion that businesses matter since they create a lot of wealth, which they are required to share with the community under the banner of “stakeholders” (Atkinson, Waterhouse & Wells, 1997, p.25). In other words, the concept of the CRS is a state in which an organization decides where it fits in social fabrics, by addressing the ethics of business, corporate governance, environmental issues, and any other issue within the social context of the society (Bushman & Smith, 2003). But is CSR necessary for the success of a corporation? Or is CSR an obligation of the Corporations? This paper critically analyzes whether the corporations have the role of Corporate Social Responsibility as part of their duty in the wider aspect of their roles.

According to some business pundits, business is principally owned by stakeholders, and that any money spent on Corporate Social Responsibility is a waste of corporation’s resources and ‘polite robbery’ from the rightful owners of the business (Bushman & Smith, 2003, p.14). The case against CSR can be traced back to a statement by scholar and business leader, Laisser-Fair. Supporting his position are people like Elaine Sternberg, who argues that practicing CRS is basically going against human rights; the right of owners to enjoy the right to reap from their efforts, hence they are denied the right to property ownership (Werther & Chandler, 2006). Stating that the objectives of every contemporary view are ridiculous, she argues that the right to own a property is earned fairly in a business environment and thus should be respected at all costs (Werther & Chandler, 2006, p.39). However, a view that “ordinary decency, honesty, and fairness” should be at the forefront of every corporation is also paramount in many ways (Jensen, 1996).

It is also argued that corporate social responsibility undermines the very base of a free society (Grossman & Hart, 1982). This is because of the acceptance of the corporate leaders that they have a social responsibility to satisfy the needs of those who have not contributed directly to the success of the corporation. It thus means that the responsibility to make more profit to the shareholders is jeopardized.

The past surveys of the most respected companies in the globe show that corporations that have not concentrated much on the topic do better than the ones which have concentrated much on CSR activities (Freeman, 1994). The survey revealed that the position of “The Most Respected Business Leaders” has been occupied by those executives or business leaders who do not play nice in the market, hence creating a belief that being good to the stakeholders at large is not

the way to go for success in business (Freeman, 1994). For instance, business leaders like Bill Gates are known to have not played the business game fairly, but still emerge with honors on their achievements (Monks & Minow, 2007). In fact, Microsoft is associated with some of the highest-profile cases of playing ‘big brother’ in the business environment hence jeopardizing the success of other firms in the same line of business (Monks & Minow, 2007, p.172). In fact, Bill Gates has used his huge financial achievements in the market to give away huge sums of money to the needy, at the expense of the competing firms.

Another notable case is that of Jack Welch of General Electric. He played nasty in the business world by a memorable and anti-social downsizing in his corporation and cases of environmental pollution that led to a lot of criticism from the society members, including the fellow business leaders (Monks & Minow, 2007, p.173). However, Alchian & Desmetz (2002) argues that Welch played his part in a manner that would be considered social responsibility activity, especially through his restructuring of the employee status through empowerment. Welch is in records as to have said that making a profit and paying taxes should not be the sole agenda that occupies the minds of the corporation leaders (Alchian & Desmetz, 2002).

In the dimension of core business and the need to focus on it, especially during this period of economic hardship, many scholars have argued that one should not lose focus of core business in the name of spending money unnecessarily. Colley (2003, p.213) states that “you cannot go round spending extravagantly” on unimportant issues while you are retrenching workers and the reputation of the company is headed downhill. From this argument, it is easy to argue that the reputation of the company may not be easily redeemed when the very society that is supposed to respond positively towards their activities are skeptical about everything they do in the name of CSR.

Fombrun (1996) on the other hand argues that the process of managing CSR depends on the aspect of managing a business. In this dimension, one can handle it poorly or well depending on whether the managers keep a firm focus on the business goals and objectives. It is, therefore, possible to reason out that time and again it is the corporation’s responsibility to keep off those activities that would attract the attention of pressure groups, especially the environmentalists or to avoid carrying out activities that may lead to prosecution and paying of regulatory charges (Fombrun, 1996). He states that through such an initiative, there would be no need for splashing out money for CSR activities. After all, many observe that CSR can lead to withdrawal of attention towards the improvement of quality, as the corporation will be spending a lot of time and money on building the image through CSR at the expense of improving product quality (Freeman 1994).

Historically, businesses have moved beyond morality and public policy, hence the need to do what is needed; create an environment for sustainable profit and growth (Millstein, 1998). By doing this, the government is benefiting through taxation, hence the need to create a favorable framework for the proper and fair game in society. Millstein (1998) argues that it is not logical to insist that smoking remain legal and adding a huge tax on it at the expense of consumers, and still act in the name of CSR. In fact many have argued that such activities or actions are purely not in the interest of the wider stakeholders, hence the call for the wholesome illegalization of tobacco.

It is indeed becoming extremely challenging as it is getting extremely hard to sustain the impact of such negative perceptions. In fact, taking an example of the tobacco industry still, they are actually global players, a big corporation that does continuously grow in its global networks at the expense of other locally based corporations. This makes it possible to take a global look at the scenario thus assuming the roles played by the locally based corporations. In essence, this may be the point behind many organizations hiding in the blanket of “small impact group” of corporations (Alchian & Desmetz, 2002).

Several studies have indicated that almost every business idea or a business venture that one may think of has the ability to “shift 1% of its overall turnover straight into its bottom line”, only if proper environmental management is undertaken in a way that would minimize wastes (Bushman & Smith, 2003). However, a lot of business leaders do not positively conceive the idea of spending money on environmental conservation or minimizing waste through specific environmental initiatives (Bushman & Smith, 2003). According to Bushman & Smith, business leaders do not like the idea of preventing the on-coming problem, but like acting after the disaster so that they can rebuild their name through CSR activities. In principle, the solution to the problems only comes after the need to solve an already existing problem rather than acting to clear the looming one.

There is considerable evidence that good governance cannot be replaced by activities of CSR. It must also be noted that the governance of corporations relies on the internal means through which their performances are accomplished (Colley, 2003). There is also little debate that good corporate governance will definitely impact the overall performance of the corporation. Again, while governance of a corporation is comprised of the internal relationships amongst shareholders, boards of directors, and managers, it must be acknowledged that such relationships are a result of respective roles of the government and private sector. This is seen in the way governments manage the laid down regulations, the general perception of the public as well as voluntary private initiatives. It is therefore important to note that CSR is basically an image-building initiative that in most cases can be avoided at the initial stages of company development. Again it should therefore be acknowledged that the primary role of corporate governance is to ensure the shareholders get their rightful control and benefit of the corporation rather than venturing into the image-building exercise through CSR.

Alchian, A., & Desmetz H. (1972) Production, Information Costs and Economic Organization. American Economic Review , 62, pp. 777-795.

Atkinson, A., & Waterhouse J., & Wells R. (1997) A stakeholder approach to strategic performance measurement. Sloan Management Review , Spring [38(3)]: 25-36.

Bushman, R., & Smith J. (2003) Trasparency, Financial Accounting Information and the Corporate Governance. FRBNY, Economic Policy Review , April.

Carroll, A. B. (1999) Corporate social responsibility: Evolution of a definitional construct. Business and Society 38(3), 268-295.

Colley, J.L. (2003) Corporate Governance . London. McGraw-Hill Professional.

Fombrun, C., J. (1996). Reputation: Realizing Value from the Corporate Image . Boston, MA: Harvard Business School Press.

Freeman E. R. (1984) Strategic Management: A Stakeholder Approach . Chicago. Pittman Books Limited.

Grossman, S., & Hart O. (1982) Corporate Financial Structure and Managerial Incentives. The Economics of Information and Uncertainty . Chicago. University of Chicago press.

Jensen, M. C. (1976) Theory of Firm: Managerial Behavior, Agency Costs and Ownership Structure. Working Paper , No 3 (1).

Mallin, C.A. 2007 Corporate Governance , 2 nd Edition. Oxford. Oxford University Press.

Millstein, I.M. (1998) Organization for Economic Co-operation and Development : Business Sector Advisory Group on Corporate Governance . London. OECD Publishing.

Monks, R. G. & Minow, N. (2007) Corporate Governance , 4 th Edition. New York. Wiley Blackwell.

Werther, B.W., & Chandler, D. (2006) Strategic Corporate Social Responsibility: Stakeholders in a Global Environment . Miami. University of Miami Publishing Press.

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Essay on Corporate Social Responsibility

This report provides information on whether the benefits of CSR outweigh the drawbacks. The report shows that the benefits of CSR are more than the drawbacks and managers should consider implementing the strategy. The research utilizes the use of secondary resources to conclude. Most of the authors used in this report show that CSR has more advantages such as consumer satisfaction, financial performance, productivity, and promotes relationships among the companies, the stakeholders, and society. This research informs the managers on the benefits of executing CSR in their companies. More so, it provides information on few drawbacks that the managers should be prepared to experience. The study adds new information concerning the comparison of advantages and disadvantages of CSR which makes it easier to determine if the strategy should be implemented in companies.

Corporate Social Responsibility

Introduction

Corporate social responsibility (CSR) is a self-controlling model of business that helps business organizations to be socially accountable to the public, stakeholders, and self. Through CSR, companies have conscious of how that affects society environmentally, socially, and economically as they do their businesses (Basuony et al., 2014). Engaging in CSR means that companies are operating in ways that improve society and its environment. As much as CSR influences companies to translate the principles into practical activities, some of the researchers show that CSR may harm companies, stakeholders, and consumers.

Research Questions

Do the positive impacts outweigh the negative effects of CSR among the companies?

Despite some of the researchers revealing the negative impacts of CSR, there are many positive influences that companies, stakeholders, and consumers experience. Companies should ensure that they are responsible for themselves, society, stakeholders, and consumers. This promotes the positive impact of business in society without other people suffering the implications of unethical business activities. However, it is linked to few drawbacks such as costs, conflicts in the profit motive, and “green washing” of customers.

Methodology

This report will utilize secondary sources for review to come up with conclusions. Articles that are less than 10 years old will be used to develop conclusions on whether CSR is effective among companies and if the benefits outweigh the drawbacks.

Literature Review

Based on a substantiation from Mena country, Basuony et al. (2014) state that CSR promotes the performance of business organizations. The stakeholder theory suggests that organizations have to manage relationships with other groups and stakeholders which influences the effectiveness of business decisions. Despite making entrepreneurship progress, businesses that pay attention to the needs of society are successful. For example, branding is effective when a business organization protects the environment and takes part in social activities such as the construction of schools. Most of the researches in this article show that CSR influences business performance through market orientation and consumer satisfaction and financial performance. In research done by Newman et al. (2018), shows that CSR has an independent positive influence on the level of firms efficacy- increased productivity influenced by high effective business engagement. Increased company involvement in community initiatives is a great influence for success in business due to customers’ and stakeholders’ trust.

The concept of the future of CSR presented by Archie Caroll shows that as companies continue to apply CSR, benefits such as stakeholders engagement, increased productivity due to employees being the driving force of business and the enhancement of power among ethically sensitive customers and the client will be experienced (Agudelo et al., 2019). The concept influences effective governance criteria, environmental responsibility, corporate citizenship, the establishment of shared business values, and social performance. However, CSR is linked to various negative impacts. Mahmood et al. (2020) suggest that CSR influences negativity through abusive supervision while valuing employees’ conducts. As much as CSR influences minimization of negative employees’ behavior, it also influences negative conduct when there is abusive supervision. More so, the implementation of CSR needs money. Especially for small businesses, CSR is not affordable to be allocated in the budget. The conflict of the profit motive is also established in CSR as the focus on societal benefits may influence losses to companies. Greenwashing of consumers is linked to CSR. For example, labeling products to be organic to attract consumers.

Implications

This exploration has implications for both bodies of knowledge and management. The research used in this report shows that as much as CSR may have various drawbacks, the benefits outweighs the disadvantages. It contributes to the existing body of knowledge by showing that CSR has more benefits and companies should consider its application in business. The limitations of the current study are the use of secondary sources and few articles to provide more evidence. More so, the articles used in this report do not include cultural factors such as religion which are significant in understanding CSR and the involved activities in the society. The discussion concerning the link between CSR and corporate governance is not provided. Therefore, further research should be done to evaluate this link and its impact on the performance of the company and the experiences of the stakeholders and customers. More so, the research provides a key takeaway for managers which is mainly the benefits of executing CSR in companies to influence performance. The managers should know that despite the presence of drawbacks linked to CSR, there are many advantages such as consumer satisfaction, effective branding, establishing trust, and financial performance.

Based on the previous research used in this report, it is evident that CSR has many advantages. These pros include consumer satisfaction, productivity, good relationships with society and stakeholders, financial performance, and effective branding. These advantages overpower the drawbacks which include costs, conflicts in the profit motive, and “green washing” of customers. However, the limitations of the research include the inclusion of fewer articles and a lack of cultural factors in the research. Therefore, this study concludes that the benefits of CSR outweigh the disadvantages. The implication of the literature is informing managers to execute CSR which promotes productivity and financial performance.

Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility.  International Journal of Corporate Social Responsibility ,  4 (1), 1-23.

Basuony, M. A., Elseidi, R. I., & Mohamed, E. K. (2014). The impact of corporate social responsibility on firm performance: Evidence from a MENA country.  Corporate Ownership & Control ,  12 (1-9), 761-774.

Mahmood, F., Qadeer, F., Abbas, Z., Hussain, I., Saleem, M., Hussain, A., & Aman, J. (2020). Corporate social responsibility and employees’ negative behaviors under abusive supervision: A multilevel insight.  Sustainability ,  12 (7), 2647.

Newman, C., Rand, J., Tarp, F., & Trifkovic, N. (2020). Corporate social responsibility in a competitive business environment.  The Journal of Development Studies ,  56 (8), 1455-1472.

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Corporate Social Responsibility - Essay Samples And Topic Ideas For Free

Corporate Social Responsibility (CSR) represents a business model where companies integrate social and environmental concerns in their business operations and interactions with stakeholders. Essays on CSR could explore its evolution from philanthropic initiatives to a core strategic component of business operations, reflecting broader societal expectations of corporate ethics and sustainability. Discussions might delve into various CSR models and frameworks, and how they are implemented across different industries and cultural contexts. The discourse could extend to the examination of notable CSR initiatives, their impact on communities, and the balance between profit-making and social responsibility. Moreover, essays might explore the challenges and opportunities of CSR, such as greenwashing, stakeholder engagement, and the integration of sustainable practices. The implications of CSR on corporate governance, ethical leadership, and the broader societal shift towards sustainability and ethical consumerism could also be captivating areas of exploration. We have collected a large number of free essay examples about Corporate Social Responsibility you can find at Papersowl. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

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Essay Samples on Corporate Social Responsibility

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Home — Essay Samples — Sociology — Social Responsibility — Corporate Social Responsibility in Business

Corporate Social Responsibility in Business

• Categories: Social Responsibility

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Words: 724 |

Published: Jan 31, 2024

Words: 724 | Pages: 2 | 4 min read

Table of contents

1. the concept of csr, 2. benefits of csr in business, 3. implementing csr initiatives, 4. examples of successful csr practices in business, 5. challenges and criticisms of csr in business, 6. future trends and the role of csr in business sustainability, 7. conclusion, references:.

• Cone Communications and Ebiquity survey - "2015 Cone Communications/Ebiquity Global CSR Study"
• Nielsen survey - "The sustainability imperative: New insights on consumer expectations"
• PwC study - "The purpose effect: Building business by inspiring employees"
• Deloitte survey - "The Deloitte Millennial Survey 2017"

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What Is Corporate Social Responsibility (CSR)?

How Corporate Social Responsibility Works

Benefits of corporate social responsibility, frequently asked questions (faqs).

 Hero Images / Getty Images

Corporate social responsibility (CSR) is the business practice of joining environmental and social policies with a business’ economic goals and operations. It is based on the idea that businesses can reduce their adverse social and environmental impact on the world.

Key Takeaways

• Corporate social responsibility (CSR) involves actions taken when a company seeks to improve its environmental and societal impact.
• CSR also includes companies adopting fair and ethical business practices.
• Research suggests that a commitment to CSR can positively affect a company’s finances and employee morale.
• CSR is similar to ESG, a process by which investors make decisions based on CSR programs and a company's environmental impact.

Corporate social responsibility is a way of doing business that aims to increase a company's social impact while meeting business objectives such as growth and revenue goals. It can also refer to any effort to improve a company's eco-friendliness or carbon footprint. Companies can deploy CSR efforts as a standalone program or as part of a broader campaign.

Companies may create CSR programs that involve every part of their business and often have dedicated staff members and resources for CSR.

Types of Corporate Social Responsibility

In 1991, researcher Archie B. Carroll, came up with a 'pyramid of corporate social responsibility.' His pyramid included the four components of CSR – economic responsibility (make profits), legal responsibility (follow laws), ethical responsibility (be fair) and philanthropic responsibility (be charitable).

These components have evolved over time into the following types of CSR:

• Economic responsibility : According to Carroll, maximizing profits consistently was the firm's responsibility. Of course, that definition has evolved to include business practices that not only help maximize profits but help make an impact.
• Environmental responsibility : Efforts made by companies to adopt business practices keeping in mind their environmental impact. This could include companies committed to shirking their carbon footprint or working in other ways to mitigate adverse impacts of global warming and climate change.
• Ethical responsibility : Efforts made by companies to adopt fair and ethical business practices. That could mean anything from offering equal to or better than minimum wages to employees, to using ethically sourced raw material.
• Philanthropic responsibility : Some companies may opt to give away a portion of their earnings or executive time to charities or towards charitable causes. For example, in 1946, Target made a commitment to give away 5% of the company's profits back to the community.

Examples of Corporate Social Responsibility

CSR programs vary in scope, but a few examples might include:

• Giving to nonprofit groups, such as local food banks, by supplying volunteers or through monetary donations
• Offering job-training programs for those in need
• Pledging to ensure diversity in the workforce
• Focusing on shrinking the company’s carbon footprint through improved supply chain efficiency

For example, outdoor and sport apparel-maker Patagonia has a number of programs as a part of its CSR efforts. These include a living wage program, a migrant worker program, a fair trade program as well as a fair labor program among others.

Another example of a company's corporate social responsibility is Starbucks' commitment to global human rights. This commitment is spelled out in official corporate policy and includes compliance requirements across the firm's business units. From hiring to supply chain to the way the company works with its business partners, adhering to this social mission affects all levels of Starbucks' operations.

Though CSR programs are often the result of pressure from within the community , research shows that, once instilled, these programs often receive broad support from within the company, too.

One report found that 92% of S&P 500 and Russell 1000 companies published reports charting their efforts related to CSR and sustainability in 2020. In 2011, that figure was less than 20%.

There's little doubt that CSR programs should exist in every business. Companies with robust CSR programs can benefit from better public relations and have happier customers. Improved company profits usually result, in turn satisfying stakeholders.

In some cases, the positive financial impact of CSR is clear. For example, a shift toward renewable energy sources, like solar panels at corporate campuses, might result in lower electricity costs over time.

A report by Babson College reviewed hundreds of CSR program studies. The reviewers found that the programs can have a strong impact on a company's market value and brand and lower risk. The report's findings found that CSR programs have the potential to do the following:

• Increase market value by up to 6%
• Reduce systemic risk by up to 4%
• Reduce the cost of debt by 40% or more
• Raise price premium by up to 20%
• Reduce staff turnover rate by up to 50%

A lot of companies publish CSR reports and provide success metrics, however, it is very difficult to measure the actual impact of CSR activities beyond the numbers provided by the companies.

Corporate Social Responsibility vs. Environmental, Social, and Corporate Governance

CSR is similar to environmental, social, and corporate governance (ESG) principles. The leading difference is that CSR is an internal function, while ESG is an external one.

With CSR programs, it's up to those inside the company to measure the success of their actions. They decide which programs to continue, and rework those that aren't performing as well.

ESG, on the other hand, is a metric that outside analysts can use to compare the effect of different corporate efforts to address environmental and social issues.

Many investment groups gauge companies based on their pledge to integrate ESG criteria. Institutional investors and mutual fund companies may outline how ESG guidelines are incorporated into their philosophies in their annual reports.

The framework for ESG reporting stems from the Global Reporting Initiative (GRI), which is a private standards body that seeks to standardize corporate sustainability reporting. It has been working toward this goal since the late 1990s.

In 2006, the United Nations launched the Principles for Responsible Investment (PRI), a program that institutional investors can use to merge ESG values into their decision-making process. More than 3,000 investors and groups have signed on to the PRI, pledging to stand by ESG six principles.

Individual investors may want their investments to reflect their values. They can buy into mutual funds and exchange traded funds (ETFs), grouped by their commitment to CSR. Examples of this include the iShares MSCI KLD 400 Social ETF (DSI) and the SPDR SSGA Gender Diversity Index Fund (SHE).

Why is corporate social responsibility important?

Big businesses committing to social and environmental causes can make a big a difference. However, CSR is important for businesses not just because it is good for their brand. Research suggests that CSR can potentially help companies increase their market value, reduce systemic risks and even retain employees. A 2019 survey suggested that 77% of consumers were motivated to give their business to companies committed to making the world a better place.

What is mainly driving the move toward more corporate social responsibility?

Companies moving towards practices aligned with environment, social and governance (ESG) criteria one of the driving forces behind CSR in recent years. While ESG has its roots in CSR, ESG is more focused on driving environmental impact, sustainability , and positive changes towards social justice.

Harvard Business School. " 5 Examples of Corporate Social Responsibility That Were Successful ."

Archie B. Carroll. " The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders ," Pages 40-43.

Target. " 2021 Target Corporate Social Responsibility Report ," Page 11.

Patagonia. " Social Responsibility. "

Starbucks.com. " Global Human Rights Statement ."

Porter Novelli. " PN Purpose Tracker: Employee Perspectives on Responsible Leadership During Crisis ," Page 3.

Governance & Accountability Institute. " 92% of S&P 500® Companies and 70% of Russell 1000® Companies Published Sustainability Reports in 2020, G&A Institute Research Shows ."

Babson College. " Project ROI: Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability ," Page 3.

Global Reporting Initiative. " About GRI ."

Principles for Responsible Investment. " About the PRI ."

Aflac. " 2019 AFLAC CSR Survey ."

Dan Daugaard and Ashley Ding. "Global Drivers for ESG Performance: The Body of Knowledge."

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Corporate Social Responsibility: Concept Overview

Corporate social responsibility (CSR) is a business model that emphasizes businesses’ obligation to be socially responsible and to give back to the community (David, 2013). The concept especially applies to large corporations: as they grow and expand, they accumulate a great deal of power that depending on its use, can be restorative or detrimental. Because of their influence, large corporations need to shift their focus from profit to sustainability and find ways to contribute to social causes. While in the short-term, being socially responsible can result in unwanted expenses, such a strategy is likely to yield benefits in the long run. Shaverien (2018) explains that today, customers’ expectations are changing: they are becoming more into conscious consumption, for which it is critical to check a company’s background and practices. As reported by Shaverien (2018), as many as 71% of young customers say that they would stop using a company’s products or services if they found out about a scandal or a controversy.

Chipotle Mexican Grill Inc. has already made social responsibility part of its mission and vision, which is the right decision. Firstly, Chipotle is a large restaurant chain with plenty of resources that can be used for meeting higher ends other than financial profit. Secondly, because the company serves food, it is a contributor to public health in the US and other countries where it is operating at the moment. Right now, Chipotle is focusing on ethically sourced production from farms that do not use pesticides and antibiotics. It makes sure that cooking technology is clean and healthy. Potentially, Chipotle could extend the list of causes that it supports and branch out in response to relevant social problems.

David, F.R. (2013). Strategic management concepts: A competitive advantage approach. Pearson.

Shaverien, A. (2018). Consumers do care about retailers’ ethics and brand purpose, Accenture research finds . Forbes.

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