Corporate Social Responsibility 7th pathway
CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives though the main motive is the same. All companies have a two point agenda- to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stake holders of every company are increasingly taking an interest in the outer circle-the activities of the company and how these are impacting the environment and society.[7] Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem. A trade-off always[citation needed] exists between economic development, in the material sense, and the welfare of the society and environment. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment.[1] This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals
. Strong marketing and PR value. When your company aligns with non-profit organizations that align with your values you create positive visibility through press coverage in the community. Reporting to your employees and the community about the impact you are making can help you attract new clients and it can become the difference between making your products popular and a making them a household name. The bonus: your organization can inspire others to do the same. 2. Employee morale, satisfaction and recruitment We are in an age of professionals that want greater purpose in their careers. Understanding what is important to your employees and empowering them to make a difference in the community will not only retain them, but it will attract high quality workers to your company. 3. You make an impact in the community Woodrow Wilson once said, You are not here merely to make a living. You are here in order to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world, and you impoverish yourself if you forget the errand. Wilsons words have become increasingly more applicable to business todaynot just individuals.
How to build csr
1. GROWING BUSINESS DEMAND FOR COMMUNITY ProgrammeS AND ENGAGEMENT WITH NGOS CSR initiatives in India are driven in part by the CSR guidelines that either compel state-owned companies or put pressure on non-state-owned companies and also derive from company-driven moral drivers to participate in the betterment of society. Many companies have started up CSR departments and new community development programmes in the last few years and all see this as a growing trend. Whether initiating from external or internal drivers, the trend appears to be infectious and is causing slow but incremental growth in businessNGO collaboration. There is a strong sense from companies that CSR and community involvement will soon be mandatory or considered essential and that the years to come will see increased investment in organization and management in this area.
2. MORAL IMPERATIVES AS STRONG AS BUSINESS CASE FOR DRIVING CORPORATE ENGAGEMENT Analysis of companies surveyed reflected that the drive to give back to society was still at the forefront of CSR activities rather than value to core business. A number of programmes are still based on a philanthropic model of giving whereby no benefit is sought for the company outside of reputational value and often programmes have no strategic alignment with either the nature of the business and its assets, or the competency set of its people. Companies with longer standing programmes in India have learned from experience that partnering with NGOs can bring additional benefits that relationships at a distance cannot. These companies CSR efforts are becoming more strategic and aligned to company core competencies and business. Indeed, unlike a number of countries where MNCs lead the way in terms of quantity of programmemes and sophistication, Indian multi- national companies are leading the way in India. There are also examples of companies originating abroad with long term presence in India, linking their community strategy with core business or their government relations. For example Johnson & Johnson is supporting rural village running costs with medical products, and Standard Chartered Bank invested in community sport in the run up to Indias hosting of the Commonwealth Games.
Paul Foundation and Tata Trusts. In many parts of the world a company foundation often becomes a way of outsourcing social responsibility, removing the need to make corporate operations more responsible. In contrast, in India, foundations have a greater legitimacy given the scale of social inequity and the amount of work to be done to bring about inclusive growth. There are many examples in India of companies separating 9 how they make their money, from how they give back. But there are also examples in India of companies with strong values that underwrite the ethics and connectedness of the business, while their foundation maximizes the developmental impact of the company and pools resources and expertise. Ultimately, the leadership of each business must understand and communicate the interconnectedness of their companys success with that of society at large. Given the scale of India, there is potential for foundations to make a large impact 5. GROWING DEMAND FOR EMPLOYEE
