Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a new concept introduced in India with a view to have social change. There is as such no common definition of CSR. Most ideal definition of CSR has been given by World Business Council for sustained Development which says, “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”.

Thus, from the above definition CSR works two ways, On the one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders (customers as well as employees). On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates.

Today employee’s are also actively participating in social activity. A company/enterprise cannot simply explore natural resource and escape their responsibility of CSR. Today companies are expending huge amount of fund on CSR with the motive of giving back nature and society, but the question is whether these money are reaching in right hand. Hence, it is individual responsibility and right to raise voice if any fishy is found in this part.

 Government now-a- day is very keen on CSR but séance of CSR has to come from within. It is not only duty but responsibility of company to take up CSR actively as this will improve society in which they are working and thus make goodwill of the company.

The concept of Corporate Social Responsibility was first mentioned 1953 in the publication ‘Social Responsibilities of the Businessman’ by William J. Bowen. However, the term CSR became only popular in the 1990s, when the German Betapharm, a generic pharmaceutical company decided to implement CSR. The generic market is characterized by an interchangeability of products. In 1997 a halt in sales growth led the company to the realization that in the generic drugs market companies could not differentiate on price or quality. This was the prelude for the company to adopt CSR as an expression of the company’s values and as a part of its corporate strategies. By using strategic and social commitment for families with chronically ill children children, Betapharm took a strategic advantage.

Why do we need CSR

1.       Win new business

2.       Increase customer retention

3.       Develop and enhance relationships with customers, suppliers and networks

4.       Attract, retain and maintain a happy workforce and be an Employer of Choice

5.       Save money on energy and operating costs and manage risk

6.       Differentiate yourself from your competitors

7.       Generate innovation and learning and enhance your influence

8.       Improve your business reputation and standing

9.       Provide access to investment and funding opportunities

10.   Generate positive publicity and media opportunities due to media interest in ethical business activities

Thus, companies has to Take CSR seriously and try to mitigate all ulterior motives. The reality is that CSR is not a tactic for brand building; however, it creates an internal brand among its employees. Indulging into activities that help society in one way or the other only adds to the goodwill of a company.