Reputational Risk and Corporate Social Responsibility: How to Make CSR Policies Attractive to Productive Corporations
| Autor | David Augusto Echeverry Botero |
| Cargo | Lawyer graduated from the Pontificia Universidad Javeriana who holds a master's degree in Economic law, earned at the same university, and a master's in Commercial Law (LL.M) from the University of Melbourne |
| Páginas | 87-117 |
87
VIeI / Vol. 10, N.° 1 / enero-junio 2015 / Bogotá, D. C. / Universidad Santo Tomás / pp. 87-118
Reputational Risk and Corporate Social
Responsibility: How to Make CSR Policies Attractive
to Productive Corporations1
Reputational Risk and Corporate Social Responsibility: How to Make CSR
Policies Attractive to Productive Corporations
David Augusto Echeverry Botero2
Fecha de recepción: 2 de febrero de 2015
Fecha de aprobación: 20 de abril de 2015
AbstrAct
In traditional economic theories, corporation main task is only to generate prots for the investors.
However, in modern global economies, some companies have more money and power than
many countries, many activist sectors and governments began to look closely at the role of those
businesses in order to prevent abuses and environmental harm, and such an audit would create
reputational risk that can strongly aect companies’ prots.
Although some corporations undervalue Corporate Social Responsibility (CSR) policies, these
could be a way to mitigate reputational risks, generate competitive advantages and new forms of
competition, increase the value of the stocks and shares, and be the key to sustainable business.
1 is article derived from a research developed at the University of Melbourne, where the author was pursuing
a master’s degree in Commercial law, as part of the Corporate Social Responsibility class. e research was
conducted between 2010 and 2012.
2 Lawyer graduated from the Ponticia Universidad Javeriana who holds a master’s degree in Economic law,
earned at the same university, and a master’s in Commercial Law (LL.M) from the University of Melbourne.
Professor at the Masters’ program in Economic Law, Ponticia Universidad Javeriana, in the elds of scientic
research and research seminars. He also serves as director of research projects on the expertise of Contract Law
of the Universidad Santo Tomás, and is a professor of General Business Law, and European Law and economic
integration classes at the Universidad Politécnico Grancolombiano. Email: davidaugustoecheverry@yahoo.es
88 VIeI / Vol. 10, N.° 1 / enero-junio 2015 / Bogotá, D. C. / Universidad Santo Tomás / pp. 87-118
Revista Virtual
Via Inveniendi et Iudicandi
VIeI
Keywords: Advertising, competition, corporate social responsibility, corporations, media
revolution, prot maximization, reputational risk, transaction cost.
resumen
En la teoría económica tradicional, se asumía que la tarea principal y exclusiva las corporaciones
o sociedades era generar benecios para los inversionistas. Sin embargo, en las economías
modernas, enmarcadas en una economía global, algunas empresas tienen más dinero y poder
que muchos países. Entonces, con el n de prevenir los abusos y los daños al medio ambiente,
muchos sectores de activistas y los gobiernos están comenzando a examinar el papel de estas
organizaciones. Este tipo de scalización genera un riesgo reputacional que puede afectar
gravemente las ganancias de las empresas.
En este orden de ideas, las políticas de Responsabilidad Social Corporativa (RSC), a pesar de
no ser apreciadas por algunas empresas, podrían ser una forma de mitigar esos riesgos, generar
ventajas competitivas y nuevas formas de competencia, aumentar el valor de las acciones y
participaciones y ser la clave para un negocio sostenible.
Palabras clave: competencia, corporaciones, costos de transacción, maximización del
benecio, publicidad, responsabilidad social corporativa, revolución de los medios, riesgo
reputacional.
IntroductIon
Convincing enterprises to apply corporate social responsibility policies or to
encourage government to impose them is not an easy task. Some experts, such as
Karnani (2010), contend that corporate social responsibility (abbreviated CSR,
hereafter) has no practical application because, in some scenarios, the generation
of prots is in conict with social welfare. is dichotomy makes some rms take
distance from their corporate social responsibilities and behave only under a desire
Para continuar leyendo
Solicita tu prueba