To return value to shareholders, companies should implement socially responsible activites that are cost positive, or cost neutral at worst. This applies to any Government too.
While infuriated by the predictability of the general election debate back home in Ireland, I received a little cornflake of pride from the BBC’s endorsement of the Irish economy (and in turn a direct experience of how foreign news sources carry more credibility, as is overwhelmingly the case in Korea). Whether the good times led to good initiatives or whether it’s good people who make good decisions, the article refers to the success and initaitive of the Irish Government’s smoking ban and plastic bag tax. Both are net positives from a long term perspective, both finanically but also in terms of the nation’s health and environment, respectively.
From my former work helping Repak, I came across statistics which show that as low as 16% (if my memory serves me correctly) of people will do ‘what’s right’ for the environment without a financial incentive. Throw in some cash and make it worth their while to be good and that figure shoots up.
This necessary ‘critical-mass’ incentive is no different for companies debating CSR policies than other Governments debating a rehash of Ireland’s rather lucrative plastic bag levy (ringfenced for environmental funding).