- 10 Marks
CSEG – Nov 2018 – L2 – Q2b – Corporate social responsibility
Discuss how CSR initiatives by a large public company could contribute to the long-term benefits of the company.
Question
Sampa Ltd is a large local fast-moving consumer goods company with many well-known branded products. It imports raw materials for its products from several countries, and all its manufacturing operations are based in Ghana. The financial performance of the company has been declining due to an economic downturn.
The CEO thinks that the economic recession will make all companies focus on profitability and that concerns about corporate social responsibility (CSR) will lessen. He has always held the view that CSR provided some public relations benefits but that it has no effect on the financial performance of companies or their share price.
Required:
Discuss how CSR initiatives by a large public company could contribute to the long-term benefits of the company. (10 marks)
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