What Is Corporate Social Responsibility
Corporate social responsibility is a concept used in business organisations to incorporate the environmental and social concerns in the same. It is a way to achieve social, environmental and economic goals. Almost every company has to implement CSR in their organisation.
Corporate social responsibility can help an organisation in their economic growth, can enhance the brand value, customers' trust regarding the product, can increase the sales of an organisation and can be helpful in risk management.
What Are Pros And Cons Of CSR?
Corporate social responsibility is a technique used by many companies to show their participation in the social activities, philanthropic activities, this is how these companies increase their brand awareness among the people. There are some points which tell about the pros and cons of Social Responsibility.
- Corporate social responsibility benefits: As corporate social responsibility is being implemented in different parts of the world because it is being helpful to the companies in their faster growth.
- Image of Business: CSR helps a business organisation in establishing the goodwill of the organisation, which helps the sales of the organisation because customers get aware about the goods and services.
- Preserve Potential Workers: CSR activities are also helpful in retaining the employees in the organisation for a longer period of time and feel their job secured in the organisation.
- More financiers: CSR benefits the organization in getting more financiers which make your organisations more financially capable in investing, hence they can increase companies financial corpus.
- Helps in Advertising the Brand: Implementation of CSR in the organisation gives a big hit to the organisation name as it highlights your company as a brand among the people because your organisation is conducting some social activity in order to provide public welfare.
- Boosts earnings: Corporate social responsibility is used as a way to boost the earnings of the organisations.
- CSR gives motivation to Motivation: the employees in the organisation because your organisation will be gaining popularity among the society, as a result, your company will also enhance its growth, and this is how being an employee of the organisation your motivation will also increase.
Disadvantages of CSR: Nowadays most companies are implementing CSR policy in their business operation regime to improve the business growth. There are some points which give an insight on disadvantages of corporate social responsibility.
- Requires more expense: As the implementation of CSR in small scale industries is challenging because it requires some investment for CSR activities to promote the business which helps the companies in establishing the brand image in people's mind. But small scale companies do not have an excess amount of money to invest in CSR.
- CSR can increase the resistance: When a company invest huge amount of money in CSR activities, will also increase the number of investors in the organisation, if in case, the organisation does not perform well and get failed in increasing the profit of the company then all the investors who have invested their money would resist against the company.
- Effect on customer's Patience: Steps towards CSR would be appreciated by everyone because your organisation is investing money for the public welfare no doubt that would be inspired to increase the sales of the organisation. However, most of the CSR initiatives have failed, as a result, it creates impatience among the clients.
- Shift in Profit Making: For investing in CSR activities, you require lots of money and need to bear less profit for some time which can affect the investment of your shareholders.
What Are The Significant Functions Under The CSR Policy?
- Intense care of stakeholders: Organisations should understand the importance of all the stakeholders who have invested their money and themselves in that organisation like the employees, clients and other affected people because all these are creating value for the company.
- Ethical Function: Governance of the organisation should be ethical, transparent and accountable. Companies should not indulge in corruption orient practices like unfair, antisocial and anticompetitive.
- Respect for Rights of employees: All the organisations have to avail the basic facilities at the workplace which should be safe, clean, humane and conducive which can hold the self-esteem of the workers. Employers need to avail training to their employees to enhance their skill and knowledge about the goods and services.
- Human Rights: All the companies need to respect human rights of the workers as no one can abuse them, neither employers nor any other in the organisation.
- Environment: In order to save the environment, companies need to follow environmental measures like the need to reduce waste, take pollution control measures. Companies need to manage all the environmental measures in this way which support the sustainable environment. Companies should follow the clean and green technology in their production units.
- Inclusive Development: As per the expertise of the companies, they need to be involved in some social development activities of the people who are living around the establishment.
What Is The World Vision On Corporate Social Responsibility?
As people are getting aware about CSR, the way of tackling the business operations are changing in the world. Most business organisations are adopting CSR as the first step towards their growth. Nowadays business is not only for profit making but it has become a unique culture to create a compassionate market.
As CSR accepts that most organisations have their direct impact on the environment, employees, economy, society and many other people who are using their goods and services, hence companies need to serve these stakeholders through CSR activities. Hence, companies need to make them competitive by implementing SCR policy. As of now around 80% top organisations have implemented CSR policy around the world while others are in the process of implementing the policy.
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