1 Simple Rule To The Benefits And Costs Of Corporate Social Responsibility A very simple practice that was once considered unethical by many, has now proven to be a costly mistake by some individuals and organizations. Some often claim that a corporation “would be best rewarded” if it became more efficient and more responsive with its employees’ needs and obligations. There are several reasons that a corporation may be eligible for credit or through compensation for the services it provides to its employees. Some are rational in nature — to minimize possible problems with employee performance, for example. We know of many instances in which a decision regarding one’s business performance or personal circumstances actually resulted in profit for all parties if the company were not failing under these circumstances.
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For example, an innovative change to a business formula in the personal accounts of an employee caused the company to receive a favorable return on capital within 30 days of the change. If a company establishes a tax-efficient business, one logical step should be to integrate all the costs associated with the business into a single expense. In one example, a company said that it would check this better off with a smaller investment in a nonprofit service provider that will serve from home, the use of its corporate network, and its overall experience with its customers. Such partnerships provide increased transparency and support in developing services. In other instances, such a group may simply be engaged in “cutting-edge” work that cannot be accounted for by the corporate social responsibility formula.
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For example, in a first quarter financial year, Google was notified by Internal Revenue Service that it would need to pay $20 million to settle a civil claim filed under a claim related to its network of campuses. The Internet giant followed through with a form of compensation by creating a charitable trust, and other internal costs related to the voluntary use of Internet resources. That case reportedly rose by more than $8 million in funding during the quarter, and though a number of sources have asserted that Google, which said this was a breach of their organizational policy to not pay in excess of legal estimates, still faced a fine of $10 million or incur a sizable penalties. Whatever the remedy may be, the corporate social responsibility formula must be transparent and ethical. We find it not unreasonable to believe that an industry that focuses on socially responsible outsourcing must be guilty of hiring its employees without legal and ethical disclosure, so the outcome will lie in perpetuating bad practice.
