Turns out you can’t start a CSR program and hope your investors forget that your products don’t work, according to CB Bhattacharya, Daniel Korshun and Sankar Sen’s latest piece in the McKinsey Quarterly.
In fact, if your products are really failing then your efforts at implementing CSR will have a negative return. The researchers theorize that in cases of poor performance, investors tend to interpret the CSR programs as detracting from the company’s core business objectives.
Reflecting on this, I suppose it does beg the question: “are you a non-profit masquerading as a corporation,” or “are you a corporation masquerading as a non-profit?”
Graph geek that I am, really love the below: