Explain the meaning of Corporate Social Responsibility. Mention various ways, how CSR is profitable and sustainable for companies like tax relaxation, strengthening public trust, responsibility, accountability, selflessness, cooperation and environmental ethics etc. Bring example if possible. Add conclusion based on the points mentioned.
Corporate Social Responsibility (CSR) mandates the companies to spend a certain percentage of their profit on the welfare of the society which can be in different forms. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives while at the same time addressing the expectations of shareholders and citizens of the region.
How CSR is profitable and sustainable for companies?
- CSR brings tax relaxation for the companies spending on social welfare. This emphasizes and encourages the objective of CSR to share the government’s burden on social responsibility.
- CSR works as an advertisement for the companies. When villages are adopted by the companies & developmental works like providing educational, health benefits etc. are provided, the people come to know about the company which ultimately helps the company increase its customer base.
- CSR helps the employees understand the values of RESPONSIBILITY, ACCOUNTABILITY, SELFLESSNESS, COOPERATION & ENVIRONMENTAL ETHICS which help in the sustainability of the company. These ethical values are imbibed by the employees & utilized for the growth of the company.
- The significance of Socialism gets boost & the companies strive to provide the profit to different strata of the society aiming to fulfill the goal of Sustainable Development.
- Corporate social responsibility practices can be used by Indian business in order to gain a competitive advantage and to maintain stable working environment.
- Implementation of ethical practices can be used strategically to build corporate reputation all around the globe. Application of ethical practices in business helps to win stake holders trust about company’s seriousness about social welfare.
For example: The Tata Group conglomerate in India carries out various CSR projects, most of which are community improvement and poverty alleviation programs. Through self-help groups, it is engaged in women empowerment activities, income generation, rural community development, and other social welfare programs. In the field of education, the Tata Group provides scholarships and endowments for numerous institutions.
Indian Businesses should follow the principle of “Karma Yoga (selfless work)” as mentioned in Gita. Business organization with proper combination of ethics and skills can assure leadership as an organization and a good reputation as an “ethical corporate citizen” worldwide.