Corporate social Responsibility

Corporate social responsibility (CSR) has become an increasingly significant phenomenon in today’s
business environment. It is an inevitable and inescapable reality. The rationale for CSR is that business
cannot succeed if there is no healthy society.

One of the main objectives of any business activity is to serve the society, apart from making profits. A
business server the society through generation of employment, by providing quality goods and also by
conserving the natural resources without degrading the environment.

A company should take a balanced view of the components of corporate social responsibility and
implement the strategies in accordance with the vision, mission, and values of the company.

CSR covers various issues, like human right, working conditions, equality and diversity, consumer
protection, environment and health impacts, economic development, ethical business practices and
political influence.

Today, companies are increasingly adopting socially responsible practices because of their long term
benefits. Some of the benefits are:-

 Creating and maintaining a high reputation.

 Securing strong relationship with stakeholders.
 Creating a better, safer and more stimulating work culture.
 Improving business management efficiency,
 Protecting from boycott actions, making access to funding easier.

Components of CSR

Compliance with legal requirements

Respect for people and

CORPORATE SOCIAL Ethical values
communities
RESPONSIBILITTY

Environmental concerns.
How to implement this CSR is another question…………….

Strategy to Implement CSR

1. Understand the relevance of CSR

2. Build business case for CSR response
3. Engage with stake holders
4. Identify & prioritize key risk
5. Develop CSR strategies
6. Develop supporting policies & procedures
7. Organizational change(alignment to CSR)
8. Monitor the performance
9. Communication.

What some companies consider as CSR:

 Education for employee families

 Plant trees to offset own pollution
 Labour welfare
 Training courses
 Supporting nearby hospital, school, etc.
 Donating through own Charitable Trust
 Minimizing garbage creation.

Some CSR activities/endeavors by Indian corporate.

Corporate companies like ITC have made farmer development a vital part of its business strategy, and
made major efforts to improve the livelihood standards of rural communities.

Unilever is using micro enterprises to strategically augment the penetration of consumer products in
rural markets.

IT companies like TCS and Wipro have developed software to help teachers and children in schools
across India to further the cause of education. The adult literacy software has been a significant factor in
reducing illiteracy in remote communities.

Banks and insurance companies are targeting migrant labourers and street vendors to help them
through micro-credits and related schemes.

In a country like India, where 70% of the population resides in rural areas, doing a bit good to them
makes a big business sense.

Thus, there is an urgent need to initiate proactive measures in this regard at least not to harm the
society. Let us wish and hope that CSR become a part and parcel of business activity more by design
than by default.