Corporate Social Responsibility
Introduction:
The era of globalization has also brought the era of accountability. Corporations today now must demonstrate a meaningful commitment to social responsibility.
Fortunately, increasingly more corporations are realizing that protecting the environment is not just good for business, but actually results in tangible benefits for society.
CSR comes in many forms. For example, corporations try to use renewable energy, engage in significant recycling efforts, invest in ways to create sustainable manufacturing, and work to ensure that their supply chain partners are in compliance with fundamental human rights.
While it is true that individuals can make a difference, the incredible scale of today’s corporations means they can make an impact that is truly game-changing.
Definition:
1.Corporate social responsibility is the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local communities and society at large.
2.Corporate social responsibility (CSR) is a business model in which for-profit companies seek ways to create social and environmental benefits while pursuing organizational goals, like revenue growth and maximizing shareholder value.
- Corporate Social Responsibility (CSR) is a business approach to focus on social matters beyond just profits.
- Its main purpose is to magnify the social standing of a corporation, earn customer loyalty and generate more sales.
- It also benefits society and the environment as businesses work for the collective good.
- In India, all companies to which the CSR provisions apply should mandatorily spend a minimum amount as prescribed for the benefit of the society as a whole.
1)Corporate accountability
2)Responsible investment
3)Responsible Business
4)Corporate sustainability
5)Corporate citizenship
6)Sustainability
7)Corporate responsibility
8)Triple bottom line
9)Creating shared value
10)Environmental ,social and governance issues.
IDENTIFICATION OF CSR
1) Cause related marketing –This technique is used by companies to raise awareness about a specific cause that they care about . Whether its small business that provides free web conference software or phone conferencing or PayPal, they can work with a charity and associate the products of their business with the cause of the non-profit. Company carry out cause related marketing to gain new customers , to improve sales, to improve brand image and loyalty, to increase employee morale, to raise awareness for the charity.
2)Philanthropy– It is normally the first thing that comes to mind when people think about a company’s CSR. Similar to cause related marketing, some companies donate to charities as it’s a great way to raise the profile of their brand and improve company reputation. Statistics show that 70% of millennials are more likely to purchase products from brands that support charitable causes. Supporting a charity is a great way to elicit more audience engagement. Volunteering, donation matching ,non-monetary donation.
3) Ethics– Ethics conduct is one of the most important attributes a company should have. Portraying this image of philanthropy and showing solidarity with various causes is well and good , but carrying out ethical practices is what truly distinguishes a socially responsible company. Good ethical conduct means that fairer treatment is not only given to their direct employees and stakeholders but that the company should also provide this treatment to every employee on the supply chain. This include farmers, factory workers, delivery drivers etc.
4)Community involvement-Companies shouldn’t limit support to well known , national non-profit organizations. They should also give back on a local and community level. Even if you are seeking employment at a smaller business and you are asking yourself “should small business work with charities? "the answer is still ,yes.
CORPORATE CITIZENSHIP
Corporate citizenship involves the social responsibility of businesses and the extent to which they meet legal, ethical and economic responsibilities as established by shareholders. Corporate citizenship is growing increasingly important as both individual and institutional investors begin to seek out companies that have socially responsible orientations such as their environmental ,social and governance practices.
Corporate citizenship refers to a company’s responsibilities toward society. The goal is to produce higher standards of living and quality of life for the communities that surround them and still maintain profitability for stakeholders. The demand for socially responsible corporations continues to grow , encouraging investors , consumers and employees to use their individual power to force management of companies to work harder, think more creatively, and act in line with their values or become at risk of being affected negatively if they do not share or follow these values.
All businesses have basic ethical and legal responsibilities , however , the most successful businesses establish a strong foundation of corporate citizenship , showing a commitment to ethical behavior by creating a balance between the needs of shareholders and the needs of the community and environment in the surrounding area. These practices help bring in consumers and establish brand and company loyalty.
