Corporate social responsibility is a concept that is prevalent across the world. More and more businesses are jumping into this bandwagon and that is a good thing. CSR is one such concept that would not just ensure betterment of the businesses doing it but also that of the society at large.
Talking about cooperative social responsibility, it is expanding with every passing week. CSR in India is an outcome of the 2013, Companies Act. India is one of the couple of countries in the world to have a devoted corporate social responsibility act. In fact, it is the foremost to have brought about legislation to do implementation of CSR activities and it was followed by United Kingdom.
What really is CSR?
CSR refers to the idea or notion that companies need to invest in socially and environmentally pertinent causes so as to interact and operate with concerned parties possessing a stake in the work of the company. CSR is termed as “Triple-Bottom-Line-Approach,” and it is meant to assist the company endorse its commercial interests coupled with the responsibilities it holds towards the society at large. CSR is different and wider from acts of charities like sponsoring or any other type of philanthropic activity as the latter is supposed to be a superficial or surface level action as part of business strategy. However, the former tries to go deep and address or resolve longstanding socio-economic and environmental matters.
Both small or medium Enterprises (SMEs) must be asked to endorse CSR by considering their respective economic capacity and not over-stretching their rather restricted resources. You know CSR based on Triple Bottom Line (TBL) Approach, might help countries in the developing bracket to hasten their socio-economic growth and assist them become more competitive. TBL approach motivates private companies and institutions to bring into line their activities in a socially, economically and environmentally feasible way. This is going to help countries achieve Sustainable Development Goals (SDGs) in the long run. Companies have to be encouraged to take up cost-effective CSR programmes that assist the society and the environment. Moreover, CSR motivates businesses to be ethically right by doing contribution socially, economically and environmentally by involving in tasks and acts like:
- Engage in the tasks and moves that are protecting and sustaining the environment.
- Engaging members of the local community.
- By making use of Socially Responsible Investment (SRI).
- Develop a friendly relationship with employees and consumers
Why is the need of CSR?
CSR is responsible for producing a lot of goodwill to companies either directly or that of indirectly. It encompasses:
- Making staff more loyal and help companies retain them in the long run.
- Make companies more genuine and help them in accessing a better market share.
- As companies act ethically, they face less legal hazards.
- Boost the goodwill of companies amidst the general public and assist in strengthening the brand value.
- Assist in stabilization of stock markets in both short and long run
So, you can read in detail about corporate social responsibility law in India or talk to CSR consultants for better understanding of this concept. Make sure that you introduce it in your business!