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ARTICLE · 18 MARCH 2010

Government Regulation, Costs And CSR

Productivity gains can be achieved through corporate social responsibility activities, particularly when it comes to anticipating government action.

CanadaCorporate/Commercial Law

Productivity gains can be achieved through corporate social responsibility activities, particularly when it comes to anticipating government action. CSR does not mean conservation for the sake of conservation; it also recognizes that today's conservation measure is tomorrow's (potentially) costly regulation. Businesses that anticipate tomorrow's regulatory reforms can adjust to a new playing field more easily, thus increasing productivity in the name of competition and profit. 

For example, the day will soon come when businesses are charged a market price for water they use from public systems. The business that waits too long to build conservation techniques into their systems will suddenly bear accelerated costs for updating their system, lose productivity during that refit and have decreased productivity in the short to medium term. The business that anticipated this new cost will have amortized the costs over the long term, adjusted to the conservation and

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