Consistent with the view of Campbell (2007), CSR activities make company socially

responsible, therefore, company understands the expectation of customers or stakeholders and

offers innovative and distinguish produt to fulfill thoses expectations, which will helps to retain
customers and contribute to enhance financial performance. environment friendly and socially
responsible products adds value and it differentiate product which gives good reason to buy the
products. Likewise, CSR promotes positive image of the company and investors are likely to
invest on such company because it reflects good management and positive reputation. For
example; in Japan Kitkat company initiate to use origami paper to wrap chocolate instead of
shiny plastic wrapper, in order to reduce the production of plastic waste. This initiation is
supported by environmental activitist and customers which makes this company environmentally
and socially responsible thus, gain positive brand exposure in marketplace.

Business organization adopt CSR policy to avoid situation like Nike company which faced
customers boycott when media reported abusive child labour practises. This situation of Nike
clearly demonstrate the financial risk associated with social and environmental issue.