Other than for monetary gain why dowould you or why would co

Other than for monetary gain, why do/would you (or why would companies), innovate?

We know that companies engage in innovation of their products/services to capture customers and thereby make a profit. This question examines some of the motivators other than money that cause people to innovate.

Solution

For a Company, apart from the monetary gains, in order to survive in the industry, what is now gathering momentum is the extent to which a Company is willing to stretch it wings into the arena of Corporate Social Responsibility. Of course, this activity comes with a monetary cost as well in most of the cases but it is still essential for the Companies to walk an extra mile in order to look out for scope to innovate in Corporate Social Responsibility with the view to create its better Corporate image on the minds of the Public and to retain its customer base. Further, a better image may also help them gain more customers into the business.

Ethics in management has now become an integral part as people nowadays do care of being ethical in business. With the passing of time, the concept of social responsibility in business ethics has also become essential on the way of Management, once the basic survival concept of the businesses stabilized. As a matter of fact, today\'s society has increasing expectations about corporate social responsibility. Also, today\'s diverse workforce brings a wide variety of values and morals to the workplace. The social responsibility in today’s era, have spread its wings to include the broader concept of ‘Corporate Social Responsibility’. The Social Responsibility of the Corporate is now a scientific approach of Organizational duties towards the larger benefits of the society. Its emergence has been due to

Ø Growth in size of corporate enterprises

Ø Education and impact of business activities in society

Ø Claims made by Companies on society

Therefore, most of the Companies innovate because they have a mature Management that has started realizing that only socially responsible behavior can work towards building favorable public opinion. Thus innovations to cater to the Corporate Social Responsibility in a creative way, are now an essential part apart from mere gaining of monetary benefits.