While reading Chapter 2 of Vogel's The Market For Virtue, Vogel makes a complete argument about the necessity for a corporation to be socially responsible.
He lists some great perks that will result from acting as a socially responsible company:
-lessening government regulation
-high employee morale
-better reputation
I agree with these perks as rational results of Corporate social responsibility. BUT Vogel goes on to dramatically say that being socially responsible lends a business to a competitive advantage in its respective market- because shareholders will deem competitors lacking in csr as "risky." I believe that a competitive advantage amongst shareholders could arrise from great publicity opportunities about the good that the company is doing. However, it is in my oppinion that most people in the market (literally) for shares would not overlook a very successful company that is lagging behind competitors in community service. ALSO I think that there is no way to account for profitability due to increased corporate responsibility and to claim so is a vast stretch the imagination extremely lacking in solid evidence.
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