Big four-is CSR a waste of money?
In regarding to construct a CSR committee, several reasons should be emphasized. Nowadays, CSR is an important idea that help firms lead the market and industry and create value of a firm rather than meaningless decoration that is a waste of money.
First of all, accounting and auditing industry is services-based, which requires firms to compete for qualified employees. Having a strong name and displaying strong social value will not only attract more intelligent and competent employees, but also keep them being loyal and motivated, increasing their productivity. As indicated in a study conducted by PWC, 88% of generation Y choose employers based on strong CSR values, and 86% would consider leaving if the companies’ CSR values no longer met their expectations. Especially in case of big fours, which are globally developed and conducted, it is important to show inclusiveness to the global hiring market, which can be achieved by actively engaging in various CSR activities.
Secondly, it is important to signal the market that companies are commit to serve public good rather than just profits and self-interests. One way to achieve this goal is to demonstrate an engagement of CSR. With lots of scandals happened in the past, commitment in CSR helps develop an image of an accounting firm of being professionalism and ethical, enhancing the trust in the market and differentiating itself from other accounting firms. Thus, clients may have confidence in a firm that will offer high quality services to them. Not only this would attract more consumers and clients, but also with the enhanced reputation of being highly professional, accounting firms would charge more fees in return.
In addition, another benefit of CSR is to reduce costs. For example, a paper from Harvard Business School indicates that superior corporate social responsibility (CSR) performance lowers capital costs. Or, increasing investment in environment friendly facilities could reduce carbon outputs, reducing
First of all, accounting and auditing industry is services-based, which requires firms to compete for qualified employees. Having a strong name and displaying strong social value will not only attract more intelligent and competent employees, but also keep them being loyal and motivated, increasing their productivity. As indicated in a study conducted by PWC, 88% of generation Y choose employers based on strong CSR values, and 86% would consider leaving if the companies’ CSR values no longer met their expectations. Especially in case of big fours, which are globally developed and conducted, it is important to show inclusiveness to the global hiring market, which can be achieved by actively engaging in various CSR activities.
Secondly, it is important to signal the market that companies are commit to serve public good rather than just profits and self-interests. One way to achieve this goal is to demonstrate an engagement of CSR. With lots of scandals happened in the past, commitment in CSR helps develop an image of an accounting firm of being professionalism and ethical, enhancing the trust in the market and differentiating itself from other accounting firms. Thus, clients may have confidence in a firm that will offer high quality services to them. Not only this would attract more consumers and clients, but also with the enhanced reputation of being highly professional, accounting firms would charge more fees in return.
In addition, another benefit of CSR is to reduce costs. For example, a paper from Harvard Business School indicates that superior corporate social responsibility (CSR) performance lowers capital costs. Or, increasing investment in environment friendly facilities could reduce carbon outputs, reducing