Corporate Social Responsibility
Corporate Social Responsibility talks about doing business ethically and maintain transparency in the businesses and being good to surrounding people and communities. CSR acts like a bridge between Organizations and the Society to fill the gaps with in them. CSR is concerned on loyalty, ethics, transparency in the business; it is not harmful to society in any manner. It is one of the good techniques for an organization to build and sustain their business in the society for a longer period to become more profitable in future and get recognition by the society and communities for its support towards socio-economic development. It can create good will to the organizations and CSR is a one of the tools for organizations to reach the society.
CSR is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives.
CSR program on the Triple Bottom Line (TBL) Approach or 3P’s, which has proven to be a successful tool for Small and Medium Enterprises in developing countries to assist them in meeting social and environmental standards without compromising their competitiveness.
CSR is the heart and soul of modern corporation and is an important standard for corporate governance. CSR is the pole star for modern corporations in order to maintain the integrity of moral fabrics both inside and outside the corporation while conducting socially responsible business.
Businesses may engage in CSR for strategic or ethical purposes. From a strategic perspective, the aim is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others. From an ethical perspective, some businesses will adopt CSR policies and practices because of ethical beliefs.
It can involve a range of activities such as:
- Working in partnership with local communities
- Socially responsible investment (SRI)
- Developing relationships with employees and customers
- Environmental protection and sustainability
Some businesses have as their main purpose the fulfilment of social or environmental goals, as opposed to a business that tries to achieve its financial goals while minimizing any negative impact on society or the environment.
There have been increased demands from employees, customers and government bodies for businesses to be more open about their activities and to reach, and maintain, acceptable standards in their business practice.
CSR can include commitments and activities pertaining to health and safety, environmental stewardship, labour rights, corporate governance and ethics, industrial relations etc. Previous studies have found that CSR-strategies can affect consumer attitudes, employee performance, cost structure and corporate image.
CSR helps to corporates to Winning new businesses market. It can Enhanced relationship and maintaining a happy workforce in the organization. CSR increase the Media interest and good reputation about the company in the society. It gives Access to funding opportunities and Differentiating yourself from the competitor to give good competitions. CSR can Saving money on energy and operating cost and Increase in good customer relation.
CSR helps in strengthening the relationship between companies and stakeholders to achieve common goals. It enables continuous improvement and encourages innovations in the workplace. CSR helps to Attracts the best industry talent as a socially responsible company to society and community. Provides additional motivation to employees to increase the employee engagement in the organization. It can Enhance ability to manage stakeholder’s expectation.
