A corporate social responsibility [CSR] is not an obligation for organizations, but a necessity to create a better world. CSR can include activities like –
· Working in association with local communities
· Develop better relationships with their employees & customers
· Socially responsible investment
· Environmental protection & sustainability
Synopsis of CSR concept
CSR is management concept, where organizations incorporate the social and environmental worries in their business activities. Corporations need to exhibit ethical behavior towards every stakeholder instead of only stockholders.
Fair and responsible attitude needs to be demonstrated while interacting with stakeholders and value sustainable development. For example, offer staff positive work environment, introduce green products, provide satisfactory post-sales service and maintain optimistic interaction with community.
Social imperatives include participating in charities or sponsorships. This can make valuable contribution in decreasing poverty, improve company reputation and strengthen brand name. Undoubtedly, CSR concept goes beyond
all these good aspects.
For an organization to become sustainable, it needs to be economically secure, lessen its unconstructive environmental blows, and act in accord with community expectations.
Significance of CSR concept
- For corporations
Enhances public image
Consumers feel better, when they shop at ventures that support community. Public image gets enhanced by supporting and creating awareness about company’s philanthropy programs.
Increases media coverage
How much an organization supports the local community and environmental needs gets better media coverage. Therefore, have strong CSR program to increase opportunities for more news coverage and publicity.
Boosts employee engagement
Who does not like to work in an organization with impressive public image that consistently gets incorporated in media news for good reasons?
Happy employee = Better productivity
Employees take pride in their organizations CSR. Good CSR program attracts and retains hardworking, valuable, and loyal employees.
Attracts and retains investors
Corporations need to have a sound business plan, sufficient finance, and strong CSR program. Investors are always ready to invest in companies that use money properly. Company that demonstrates commitment towards their employees and customers as well as the lives of communities attracts investors.
- For employees
Positive workplace environment
With strong CSR program, employees feel responsible and productive as soon as they enter the workplace with positive ambiance. Corporations caring about people outside their business walls instill a strong CSR culture within every employee.
Committed employer motivates the employees, who feel strong connection with their company. Employees feel more liable to be creative and innovative.
Encourage personal and professional growth
CSR culture promotes volunteerism from employees, who proudly contribute their time, effort, and money towards worthy cause.
- For environment
Green CSR activities concentrate on energy use, recycling, water use, emissions, waste management, and more. For example, corporate social responsibility of Saint-Gobain
is to create sustainable constructions. Their two priorities to manage the raw materials and waste at their construction site are remarkable. Waste reduction strategies applied are on-site waste sorting and recycling
Properly executed CSR concept brings different competitive advantages. It includes increase in sales and profits, savings in operational cost, enhanced quality, and productivity, improved brand reputation, better customer loyalty, and precise decision making power.