While corporate social initiatives might not be that effective as a marketing strategy, reputational harm can cost companies dearly.

There is evidence that ignoring human rights could be really disadvantageous for businesses and countries. Big companies have actually lost cash and also had individuals stop buying from their stores or purchasing from them when there were accusations of human rights abuses, like when there was news about forced labour. In 2021, several companies got boycotted because individuals learned they could have already been making use of forced labour in their supply chains. This demonstrates that people will act when they think a business is doing something incorrect. That is the reason it is important for governments all around the globe to be sure their rules follow the international guidelines about peoples legal rights and that businesses adhere ethical business practices. Some countries have already made changes to do this, like Bahrain human rights reforms and like Oman human rights reforms.

Despite the fact that doing things to be socially accountable might not appear to be it has a big impact, it is still important for organisations to give some thought to. When they do not, they are able to end up with a non favourable reputation, which can lead to people boycotting them and them taking a loss. To prevent this, businesses need to look closely at where they get their items from and exactly how they treat people. Some governments, like Ras Al Khaimah human rights reforms, are making big modifications to become more open about what they actually do to follow human rights guidelines and ethical sourcing practices. This not just prevents them from getting into trouble for having a non positive reputation but additionally assists them build trust with individuals and attract investments.

Nowadays, people worry more about the environment and society than they did in the past when only cost and quality mattered in buying decisions. Nevertheless, studies examining exactly how people react to companies' efforts to be socially responsible i.e., corporate social responsibility reveal there is no strong relationship involving the two. In more recent studies, scientists utilized surveys and experiments to question individuals about different CSR initiatives by organizations and how they felt about them. They wanted to understand if individuals thought these efforts had been genuine and if they might support the business as a result of them. As an example, they asked individuals if they would be more inclined to purchase from a business that donates some of its profits to charity. In addition they viewed just how people reacted to genuine incidents, like item recalls or things that affected a business's reputation. They discovered that even though many people think it is good to encourage socially responsible organizations, most still care more about such things as price and quality once they determine what to purchase. And even whenever individuals have a positive view of companies that do-good things, it generally does not constantly suggest they will purchase from them. In Indeed, a lot of people are dubious of businesses' good reasons for doing good things and think they have been just wanting to make themselves more marketable.