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in Grade 12 by Master (947k points) | 3.9k views

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Negative impact of Corporate Social Investments (CSI) on communities.

  • Businesses are not always equipped to address social problems/challenges.
  • Communities can avoid taking responsibility for themselves, because they depend/rely on a business's CSI initiatives/'Hand-outs' discourage locals from taking their own initiatives by making them dependent on CSI- programmes.
  • Distribution of scarce resources to selected beneficiaries in the community may cause problems such as discrimination.
  • Some businesses only participate in CSI initiatives to raise profit and do not really care for the community in which they operate.
  • Businesses may not meet the longer term needs of society/Businesses cannot deliver sustainable CSI projects.
  • The benefits of the programmes may not filter to the intended persons within the community.
  • Spending money on CSI means the business has to recover expenses through higher prices√ which have a negative impact on the economy.
  • Businesses tend to focus on CSI projects that do not directly benefit the community.
  • Less money is available for community projects during unfavourable economic conditions.
  • Consumers are not easily convinced√ that a business is acting in the best interest of the community/environment.
  • A business often appears to benefit more from the CSI expenditure than the perceived benefits to the communities.  
by Master (947k points)
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