Corporate Social Responsibility, often referred as CSR, is an evolving business practice that encourages a company to be socially accountable towards its stakeholders and the public. Within a CSR strategy, a company integrates environmental, social, economic and human rights concerns into its long term business strategy as well as its day-to-day operations.
For the Society
The primary purpose of CSR is to deliver tangible and intangible benefits to the society as a whole. This includes social and environmental aspects that are ethical, transparent and lawful. Some of the benefits that CSR business policies can provide to the society are:
For the Companies
Being socially responsible is not only beneficial for the society as whole. It can also provide a lot of benefits to the firms including:
What if a company does not have a CSR strategy?
Businesses that ignore the role of CSR in the current business landscape run a high risk of bringing down their public brand image and reputation. This can in turn significantly affect the company’s performance and profits. Hence, CSR and business performance are two concepts that are nowadays interconnected. It is important to understand that CSR is not philanthropy. It’s all about companies understanding their impact on the social and environmental landscape and proactively making efforts to minimize their negative burden and maximize their positive impact on the society and end consumers. Being ethical and transparent is nowadays demanded by consumers and is no more an option for the business solely for the firms that want to do something extra.