As Corporate Social Responsibility gains traction but the financial crisis and growing international competition forces many companies to cut costs, a growing number of multinational firms look to maximise the welfare impact of their CSR expenditure.
Through corporate social responsibility, companies are able to show that they are part of the solution in the fight against global warming and care for their stakeholders’ communities. By taking action many companies have benefited from the good publicity manifesting their image as a company who cares for the environment.
This voluntary act is becoming a symbol of good will and used by more and more companies willing to operate and develop businesses in developing countries while actively recognizing the need to address the world’s environmental issues.
CSR investments’ positive marketing effects not only help to attract more customers and gain visibility but can also reduce borrowing costs as investors are keen to invest into “green” portfolios and acknowledge that investments into communities in which the company operates now will lead to cost savings in the future.