Positive and Negative Impact of CSR

Running head: FOUNDATIONS IN ACCOUNTING
Foundations in Accounting
Name of the Student:
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1FOUNDATIONS IN ACCOUNTING
Executive Summary
Corporate Social Responsibility is a type of responsibility which is voluntarily taken by the
companies to help the society to eliminate a few social issues and to make the community a
better place to live. This contribution adds value to the society as well as to the company as
the goodwill of the company. CSR can impact society in both positive and negative way. In
this report, both the impacts are discussed in detail and evaluation was also done between
Woolworths Group and Coles to find out about which company has displayed their
community-based information in a better way to the audience.

2FOUNDATIONS IN ACCOUNTING
Table of Contents
1.1Introduction...........................................................................................................................3
1.2 Discussion............................................................................................................................3
1.2.1 Positive and negative impact of CSR on local communities all over the World..........3
Positive Impacts.................................................................................................................3
Negative Impacts................................................................................................................5
1.2.2 Evaluation of the community-based information of Woolworths Group with
Wesfarmers Limited in Australia...........................................................................................6
Woolworths Group.............................................................................................................6
Wesfarmers Limited...........................................................................................................7
The evaluation....................................................................................................................8
1.3 Conclusion............................................................................................................................9

3FOUNDATIONS IN ACCOUNTING
1.1 Introduction
Corporate Social Responsibility has become very popular worldwide as it helps the
corporate to be socially accountable to the stakeholders and be responsible for the social
activities they do for to betterment of the society. Few portions of the company profit are
invested in the social work to bring in a massive change in society. However, CSR activities
by the companies can positively as well as negatively impact society. CSR activity is not only
limited to their community only, the companies now can contribute to the communities
outside their country as well to create value in society. Displaying and promoting the CSR
contribution in society has become a worldwide trend to hold a better position in the market
and to enhance the company goodwill. Here the report has detailed discussion regarding the
positive and negative impact of the CSR activities over the society.
1.2 Discussion
1.2.1 Positive and negative impact of CSR on local communities all over the
World
Positive Impacts
CSR is referred to as one of the essential strategies applied by the business
organizations to contribute to the environment by taking responsibility of the society to
impact their activities on the local community. The local community that is the consumers,
employees, communities, stakeholders and communities in the near vicinity are the ones who
get directly affected by the CSR activities of any business organization (Klettner, Clarke &
Boersma, 2014).