The term corporate social responsibility gives a chance to all the employees of an organization to contribute towards the society, environment, and country and so on. CSR stands for Corporate Social Responsibility and is a business’s approach to sustainable development by delivering economic, social and environmental benefits. It also encapsulates the initiatives by which a company takes responsibility for its effect on social and environmental wellbeing. In essence, CSR looks beyond the company profits and focuses on benefiting the greater community.
India, too, is actively involved in practicing corporate social responsibility. Section 135 of the Indian Companies Act mandates companies to “CSR spend of 2 percent of average net profits during the three immediately preceding financial years.” Effective from 2013, this rule is applicable for all companies “having a net worth of rupees five billion or more, or turnover of rupees ten billion or more or a net profit of rupees fifty million or more during any financial year.”
Understanding Corporate Social Responsibility (CSR)
Corporate social responsibility is a broad concept that can take many forms depending on the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands.
As important as CSR is for the community, it is equally valuable for a company. CSR activities can help forge a stronger bond between employees and corporations, boost morale and help both employees and employers feel more connected with the world around them.
Importance of CSR
Here are some reasons why:
1. Makes a Business more Sustainable
At the point when an organization chooses to make corporate responsibility a center, it should be more creative and innovative. It can’t be “the same old thing.” Sustaining development and creativity forces an organization to remain significant and change as per what clients need. Nowadays and for years to come, clients need social duty. The ability to change is important for life span and supportability.
2. Engaged Employees
You need to guarantee that your workers know your CSR strategies. It’s demonstrated that employees enjoy working more for a company that has a good public image than one that doesn’t. Moreover, by showing that you’re focused on things like human rights, you’re considerably more liable to draw in and hold the top competitors.
3. Increased Customer Engagement
Customers think consciously about the goods and services they buy. According to a Nielsen Global Survey of Corporate Social Responsibility reported that more than half of the examined customers are willing to spend more if the company is obliged to corporate responsibility.
4. Makes the World a Better Place
Organizations, especially huge enterprises, can change society fundamentally. They have a great deal of impact, so they cannot just bring issues to light of issues, they can assume a necessary part in progress. Addressing environmental change is a perfect representation of where companies can assume responsibility. By assuming liability for their effect, enterprises can help the world become a better, happier place.
Examples of Corporate Social Responsibility
Coca-Cola Company (KO)
In 2010, Coca-Cola started the 5by20 initiative to empower women across the globe. The Company stated:
Through 5by20 programs around the world, we equip women entrepreneurs to overcome social and economic barriers by providing business skills training, access to financial services and assets, and connections with peers and mentors. The women participating in 5by20 work in roles across our value chain, including retailers, suppliers, producers, artisans and more.
Visa Inc. (V)
Through its Financial Inclusion program, Visa has developed innovative ways of bringing digital cash to places in the world where the financial infrastructure doesn’t exist or for people who don’t have access to the financial system, like residents of many developing countries.
Today, about half the adult world lives in the informal economy, dealing exclusively in cash. To be one of these estimated two billion people is to face financial barriers that make life risky, expensive and inefficient. Financial Inclusion helps put people on a path out of poverty, creates productive, empowered citizens, fosters business opportunities and fuels economic growth.
Microsoft started its CSR initiatives back in 1983. Being in the game for a long time, they still rank as one of the most “giving” organizations. Their Microsoft Philanthropies works with nonprofits, public and private agencies to empower people and local communities.
Socially responsible companies cultivate positive brand recognition, increase customer loyalty, and attract top-tier employees. These elements among the keys to achieving increased profitability and long-term financial success.
But the most meaningful and timeless return to being socially responsible is the sheer joy and satisfaction that comes with doing something good for society. I think we all sleep better when we know we helped someone smile today.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge