CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility is the commitment of the company to contribute to the sustained economic development by working with employees, their families, the local community, and the entire society in order to improve life quality. CSR is a concept whereby companies decide voluntarily to contribute to a better society and a clearer environment. It is the ethical behaviour of a company towards society. Today the focus of business organisation has changed from economic aspects to social aspects. Business organisation is viewed as an institution that helps to solve a broad range of social problems like poverty, crime, pollution etc. They are expected to raise the level of education, create job opportunities, and uplift the minority and weaker sections of society.

Internal Aspects of CSR:

# Companies take interest in employee’s welfare by providing medical care, extended sick leaves, assistant for dependents, etc.

# Companies create helpful working conditions by enhancing the working surrounding, creating social and sports clubs, taking steps for workers’ safety, etc.

# Companies take steps in designing jobs to the increased satisfaction of workers rather than for economic efficiency.

External Aspects of CSR:

# Companies take responsibility for green issues by attempting to reduce pollution.

# Companies take steps towards energy conservation.

# Companies give force to those products which will not endanger the environment.

# Companies take conscious decision to maintain ethical advertising standards and refusing to sell in markets where bad effect of the product may be expected.

# Companies select suppliers who work on fair terms of trade.

# Companies generate employment.

# Companies involve in community activity by sponsoring local events and supporting local good works.

Importance or Advantages of CSR

1)Employees are Satisfied- Employees want to feel proud of the organisation they work for. An employee with a positive attitude towards the company is less likely to look for a job elsewhere. It is also likely that a company will receive more job applications because people want to work for it. More choice means a better workforce.

2)Customers are Satisfied- Research shows that a strong record of corporate social responsibility enhances customers’ attitude towards the company. If a customer likes the company, he will purchase more products or services and will be less willing to change to another brand.

3)Positive Public Relations are Developed- Corporate social responsibility provides the opportunity to share positive stories online and through traditional media. Companies no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from worth of mouth marketing.

4)More Business Opportunities are Created- Corporate social responsibility programme needs an open, outside oriented approach. The business should be in a constant dialogue with customers, suppliers and other parties that affect the organisation. Due to constant interaction with other parties, the company will be the first to know about new business opportunities.

5)Long Term Future for the Business- Corporate social responsibility is not something for the short term. It is all about achieving long term results and business continuity. Large companies refer to shaping a more sustainable society. CSR is about managing these relationships to produce an overall positive impact on society, while making money.