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Essay / Greyston Bakery Case Study - 842
Why don't many companies follow this example? The Greyston Bakery can be described as a social experiment. Although it is a for-profit corporation, the company's mission and vision is linked to improving the social well-being of its employees and the community. The company provides work to people rejected by other employers and by society in general. All of its profits are used to fund social activities that include teaching life skills to employees, creating housing for the homeless, running medical clinics for people living with HIV/AIDS, and empowering people to become self-reliant. In most cases, benefits and social protection are at odds. In such a case, corporate managers accountable to shareholders are likely to focus on the profit-making side of the business rather than going against the interests of their shareholders by promoting social welfare at the corporate level. detriment to profits. Additionally, research shows that companies actively involved in corporate social responsibility efforts are more likely to be targeted by activists (Kress, 2011). In fact, it has been established that many companies launch social welfare projects when they intend to profit from them. For example, car manufacturers were successful in creating fuel-efficient vehicles when they became profitable; similarly, energy saving became an important CSR activity when the cost of energy became very high. As such, businesses benefit their society by following their own