There is an argument that enterprises should generating revenue and take on social obligations. I partially agree with that because companies can build a good social image by helping the public like building houses, the point where I disagree that too much social responsibility on the part of corporations may reduce their own commercial value.
To begin with, corporations can fulfill their social obligations from the perspective of helping residents improve their living environment, because well-known companies can hire professional architects to construct houses through high prices, when residents live in the district contracted by these companies, they will have a favorable impression of the firms that helped them. Successful enterprises like Tencent and Wanda have helped residents build their homes, leading to a favorable public perception of them. A good corporate image helps to attract more customers and further enhances the competitiveness of the company in the market.
Conversely, over-concern with social responsibility can lead to lack of time for corporations to enhance their own corporate value, because enterprises investing large amounts of money in social responsibility programs may lead to a shortage of funds for their core business, consequently, firms will invest less in innovation. For example, Nokia, once a giant in the cell phone market, lost its market position due to a lack of creativity and failure to adapt to market changes in a timely manner.
In conclusion, appropriate corporate social responsibility may enhance its public image, but investing too much time and money in this duty can jeopardize the company’s long-term innovative development.