Corporate Social Responsibility (CSR)
- Environmental efforts
- Ethical labor practices
Meaning of CSR
CSR stands for Corporate Social Responsibility (CSR) is a theory that proposes that it is the duty of the organisations operating within society to participate towards economic, social and environmental progress, which creates a huge impact on society for good.
Corporate social responsibility (CSR) is a kind of business approach that adds to sustainable development by giving benefits relating to the economic, social and environment to all the stakeholders. Offering socially efficient initiatives is absolutely a win-win situation.
Need of CSR
Consumers frequently don’t accept unfair business practices or organisations who do not act responsibly. Progress in social media means that negative or evil practices quickly fuel conversations on the internet. Organisations are liable for their actions like never before.
Applicability of CSR
Corporate Social Responsibility is needed for all companies viz. private limited company, or a limited company. The following companies are required to constitute a CSR committee:
Companies having a net worth of Rs. 500 crores or greater, or
Companies having a turnover of Rs. 1000 crores or greater, or
Companies having a net profit of Rs. 5 crores or greater.
If any of the given financial strength standards are met, the Corporate Social Responsibility (CSR) provisions and related rules are applied to the company. These companies are needed to form a CSR committee comprising of its directors. This committee oversees the entire CSR ventures of the company.
Benefits of CSR
CSR should not be viewed as a drain of resources, because effective implementation of CSR policies can help the organisation:
Acquire new Business
Improve Customer relations
Develop and improve relationships with customers, suppliers and networks
Distinguish yourself from your competitors
Promote your business reputation and standing
Generate assertive publicity and media possibilities due to media interest in moral business activities.
Ways to practice CSR
Environmental efforts: One principal focus of corporate social accountability is the environment. Businesses despite size have a large carbon footprint. steps that are taken to reduce those footprints are both good for the company as well as society at a large.
Philanthropy : Businesses can also exercise social responsibility by donation of money, products or services to charitable causes. Larger companies have a lot of resources that can serve charities and local community programs.
Ethical labour practices: By treating employees equitably and ethically, companies exhibit their corporate social responsibility.
Volunteering : Visiting volunteer events tells a lot about a company’s reliability. By performing good acts without demanding anything in return, companies freely express their concern for specific issues and gives support to certain organizations. It also Improves the reputation of your business and standing