Merits and demerits of corporate social responsibility?

a) Increased operational costs: CSR activities require a company to allocate part of its resources to such activities, thereby increasing the costs of the company. This can further translate into a short term reduction of the company's profits.

b) Lose of competitive advantage: A company that engages in CSR allocates some of its resources to CSR. A competitor company that does not engage in CSR activities invests all its resources in its core business thereby having a more competitive edge in comparison to the company involved in CSR

c) Conflict between management and shareholders

d) If CSR is made mandatory, companies can seek to engage in activities that are compliant to the law, but necessarily beneficial to the communities at large. In such cases, the benefits for charity may not be taken into consideration.