Corporate social responsibility or CSR has become kind of a philanthropic activity. The practice of it in India is still under that phase but they have moved on from institutional buildings to research, education, community development, sustainable products and cultural development.
When it comes to corporate social responsibility there has been a quite a lot of global influence and more communities are becoming demanding and super active when it comes to discernible trend. But CSR mostly remains restricted to community development. They are getting more strategic in nature and a large number of companies these days are undertaking the space when it comes to sustainability reports and they are even more inclined in publishing CSR reports.
CSR has become a part of the forefront now and it is promoting more transparency and disclosure. Here, communities have become a focal point now. On the other hand, there is a discussion among the company’s relationship with the stakeholders and integrating CSR into its core operations and the draft rule mostly suggests that one can go beyond communities and also beyond the concept of philanthropy. Now the interesting thing is to observe that at which way the understanding works at the basic ground level.
Benefits of a robust CSR programme
Business environment is getting more complex day by day the stakeholders are also becoming very vocal about their expectations. Good CSR practices can always bring greater benefits. Here are some that one should take note of:
Communities provide the licence to operate
Apart from the internal motivations, ethos and values there are many stakeholders who really appreciate the corporate behaviour, customers and the investors. One must remember that the 4th largest stakeholder in the country is community and most of the companies have started realising that. The license to operate is not given by the government alone but there are many communities which are impacted by the company’s business operations. There are robust CSR programmes which can meet the aspirations of these communities not only provide the license to operate but also maintain the true license for long.
Attracting and retaining employees
There are many human resource studies which can be linked to the company’s ability to retain, attract and motivate the employees with the CSR commitments. They always encourage such interventions and enable the employees to participate in such programs which increase the employee morale and they gather a sense of belonging to the company.
Communities as suppliers
There are a few innovative CSR initiatives that are emerging these days and here the companies mostly invest in the enhanced community livelihood by including them in their supply chain. This has benefitted a lot of communities and increases their income levels which can in turn again secure the supply chain.
Enhancing corporate reputation
The traditional benefit of CSR Company is that it generates goodwill and they create a positive image. The branding always benefits the companies and their existing CSR programmes which are operative.
In order to become corporate responsible citizens one must do that.