Communicating their sustainability practices to their

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communicating their sustainability practices to their stakeholders though they are encouraged to. This suggests that the companies have not engaged in sustainable
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practices (otherwise they would have made their CSR activities known to the public). A highly possible reason could be that such activities would increase their operating costs and ultimately lower their profits. [ - in-sustainability-reporting ] Evidence: According to an article in The Straits Times, in 2015, major companies spend about US$20 billion (S$28 billion) a year on CSR - equivalent to almost 40 per cent of the Singapore government's projected expenditure for the current financial year. Big bucks are spent by companies to hire people to produce glossy reports to highlight their good behaviour, sponsor projects which help the community they do business in, as well as support a host of charities to showcase their caring side. Above all, companies also spend big sums on expensive consultants to advise them on how to undertake CSR and how to make their laudable efforts widely known. 2. Carrying out CSR practices is no guarantee that a company will rake in more revenue. Consumers might not reward the company with more custom just because it has engaged in socially responsible practices. This is because ultimately, the decision to buy any product depends on many factors, one of which is the price or the perceived value of the goods. Consumers that are price sensitive will go for products or services that they feel give them the best value rather than those that promote sustainability but are higher priced. As such, it is not reasonable to expect a company to engage in such practices for they might not help it to gain maximum profits. Evidence: Marks & Spencer’s Plan A, which was launched in 2007, aims to build a sustainable future by being a socially responsible business. But simply being a socially responsible business is not enough to attract customers to shop in M & S. Last year, M & S announced that its annual profits fell by almost 64% and that it would speed up store closures as part of its plan to turnaround its business. Evidence: In 2016, Dunkin’ Donuts announced it would use only cage-free eggs and poultry items by 2025. However, Technomic consumer data found that while 47% of consumers said they are more likely to order foods made from cage-free eggs/poultry during breakfast dining-out occasions, only 17% of those consumers said they are willing to pay more for it.
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