However there have been some disadvantages that have been pointed out by professionals about the approach of using the economic instruments in sustaining the corporate social responsibility. It has been argued that the research shows that the extrinsic rewarding approach can provide short term motivational boost when the tasks are not very challenging and highly controlled. However the competition in modern times require much more dedication, creativity and potential and in such cases the rewarding approach can result in short term thinking, unethical behavior, lowered self motivation, lower performance and less creativity.
The disadvantage with the economic instruments is that they are not used to aim at the most important environmental problems, but are implemented incidentally with respect to the principle of the lowest political resistance (Andersen, 1994). It has also been argued that the carrot approach makes the companies addicted to the rewards and diminishes the self motivation in the absence of the rewards. Hence it is a common belief that the carrot approach works only when the employee is hungry enough, the carrot is sweet enough and the load is light enough.
For example, there is a also a financial inclination in the use of green taxes so that there is more focus on the financial profit and revenue generated than on environmental effectiveness. If any of the above mentioned criteria is not fulfilled, it is said that the carrot will not serve the incentive. Even if the motivated has worked with the economic incentives or the reward, the question still remains of letting the corporate have a bite of the reward every now and then or else the companies might get easily de-motivated. On the other hand there is one more bitter part of this approach. Hence it is argued that the carrot approach produces a feeling of greed and in some cases the motivation lives for a very short period of time. Hence the tasks that need longer and harder commitments might not be fulfilled with the help of the carrot approach.