Thursday, 8 November 2012

Corporate Citizenship

Corporate Citizenship

Corporate Citizenship affects image rating because if you spend money on various social responsibility initiatives customers will view your brand higher. It takes several years of SR to start seeing a large effect on your image rating, however you should see a couple extra points added in Year 11. CC & SR are completely optional and you do not have to participate. It will not hurt your image rating by not investing in CC &SR, however there is a award starting in year 14 for the company that spends the most in CSR.

Below you will find a screenshot of the default corporate citizenship page you will find when you first launch the decision entries screen in Year 11.



You can see that you have several decisions to make in terms of how much you want to budget on corporate citizenship.

My recommendations starting from the top.
Use of "Green" footwear materials - No don't do it. It costs a lot  of money and the benefits don't outweigh the costs of producing.

Use of Recycled Boxing/ Packaging - Once again don't use, like the "green" footwear materials the costs heavily outweigh the benefits.

Energy Efficiency Initiatives - I would recommend using this as it boosts your Assets and is depreciated every year. 

Charitable Contributions - Never, unless you really want that CSR award, it has not really any other benefit

Ethics Training/ Enforcement - Always use this for "All Employees" as it provides the best bang for your buck. Every year this amount will go down and you will start seeing the effects right away.

Workforce Diversity Program - Always use this along with Ethics Training as the two in combination are the cheapest investments you can make in CSR.

In closing, use ethics training for "all employees" and workforce diversity program every year and the cost per pair will drop each year making it more valuable as time progresses.



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