Question

Which of the following is not a criticism of CSR ?

• A. CSR is too costly
• B. CSR encourages cynicism
• C. CSR leads to enhanced brand reputation
• D. CSR is misguided

Answer 1

Answer: (C)

CSR leads to enhanced brand reputation

CSR creates a favourable public image, which attracts customers. Reputation or brand equity of the products of a company which understands and demonstrates its social responsibilities is very high. Customers trust the products of such a company and are willing to pay a premium on its products.

Organizations that perform well with regard to CSR can build reputation, while those that perform poorly can damage brand and company value when exposed. Brand equity, is founded on values such as trust, credibility, reliability, quality and consistency.