Social Responsibility

Social responsibility is also an intangible asset, although some consider it both intangible and tangible. Social responsibility is the expectation that the public perceives that a firm will make decisions that are in the best interest of the public as a whole. Social responsibility can include a broad range of topics from environmental protection to consumer safeguards to consumer honesty and employing the disadvantaged. An image of social responsibility can convert a potential disaster into an advantage. Johnson & Johnson, for example, earned high marks for social responsibility in the way it handled the two Tylenol tragedies in the 1980s. Nestlé, on the other hand, earned low marks for its role in the infant-formula controversy.

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