Coronavirus: Corporate Social Responsibility

To what extent has the coronavirus crisis acted as a catalyst for increased corporate social responsibility?

In this video we look at some examples and criticisms of some businesses for their actions as the public health and economic crisis has deepened.

What is Corporate Social Responsibility (CSR)?

• The extent to which a business addresses the concerns and obligations to its wider stakeholders
• The actions a business takes over and above the minimum required by law in addressing societal needs and wants

Arguments for corporate social responsibility

1. Ethical business matters especially at times of great uncertainty and stress
2. Improves image and reputation which ultimately is good for revenues and profits
3. Attractive to stakeholders including customers & existing / potential investors
4. Increases employee motivation by stressing the purpose motive of work

Professor Mazzucato on social capitalism

“Covid-19 is a major event that exposes the lack of preparedness and resilience of the increasingly globalised and interconnected economy, and it certainly won’t be the last. But we can use this moment to bring a stakeholder approach to the centre of capitalism. Let’s not let this crisis go to waste.”