Much research has looked at whether corporate social responsibility (CSR) initiatives are good for the bottom line, and thus for the shareholders. Scholars have achieved no consensus.
Triple Bottom Line
One way of grappling with CSR involves the claim that companies must figure not a single bottom line, but three. The idea is that traditional profit-and-loss measures must be supplemented by a standard for environmental performance and by a standard for social and community responsibilities.
Critics
The idea of a triple bottom line has come under criticism. Some say it evades the issue of whether CSR programs help or hurt the old-fashioned shareholder-centered bottom line.
Example
Tyson Foods is often cited as an example of corporate social responsibility. In January 2010, Tyson announced on its blog, "Tyson Hunger Relief," that "for every comment you make to this blog post telling us you think hunger is unacceptable ... we'll donate 100 pounds of food." As a consequence, the company ended up sending a food bank in Austin, Texas, two trucks full of chicken for the hungry.
Such actions may contribute to the economic bottom line through public image enhancement or employee morale boosting, but the implications are difficult to quantify.
