Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility initiatives that in turn generate profit for the company. Which feature of corporate and social performance is illustrated in the given scenario?

Question

Rosa Galvan

Business

17 March, 13:29

Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility initiatives that in turn generate profit for the company. Which feature of corporate and social performance is illustrated in the given scenario?

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Answers (1)

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Francis Pollard · Answer 1

Virtuous Circle

Explanation:

Virtuous circle occurs when one good events feeds on itself to improve business further. In the question, blue inc. invested in social responsibilities initiative (a good event) which on turn generated profits for the company (improved the business), probably by the event leading them to having more loyal customers.

It is a self propagating advantageous situation in which a successful solution or events leads to more desired results or success. It creates a positive feedback loop, creating goodwill with the customers.