Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is a type of business strategy that looks at how a business can improve society as a whole. Corporate Social Commitment comes at a cost, with let businesses contracepting 1 percent of their profits to charities, while others give their employees time off to help charities. (CSR) outlines the role and functions of companies in matters relating to social and development causes, the environment, disaster relief, and community support.
The purpose of the company’s responsibility is to give back to the community, participate in community service activities, and provide good community value. Businesses are increasingly turning to CSR to make a difference and build a positive brand for their company.
CSR in India is traditionally seen as charitable work. And in line with Indian culture, there was a belief that every company has a moral obligation to play a significant role in fulfilling social obligations, depending on the financial life of the company. Having mentioned that now regulations define the course as to which company is legally bound to contribute part of their earning.This sums up what is meant by corporate social responsibility .
Benefits of CSR (corporate social responsibility)
1. CSR increases employee engagement
Extensive research proves that CSR and a strong sense of staff motivation contribute to increased employee engagement. Staff interaction is not just a KPI to measure CSR performance; it is a good metaphor for further business acumen.
This in turn increases productivity, which means more profit, and may lead to less absenteeism.
Organizations are devising programs where co-workers volunteer and engage in CSR activities. Opportunities are created that continue to engage and motivate the employees . Philanthropy involves all organizations, from marketing managers to project leaders. This serves the purpose of corporate social responsibility
2. CSR promotes basic finance
When you try to earn a purchase under the leadership of your CSR program, it is perceived positively by the customers. According to a study, a majority of people surveyed would buy products from a responsible company. Most of the people said that they would support the company in their community.
Millennials and Generation Z connect with companies having a positive impact on the communities. This engagement translates into greater sales in today’s highly connected world. This further highlights the importance of Corporate Social Responsibility projects.
CSR and sustainable programs have had a positive impact on the business line. These are some of the benefits of corporate social responsibility
3. CSR enhances brand value
Of all the good things your business gets in showing your CSR efforts, it can be easy to ignore its reason for being in the first place. CSR gives people the power and platform they need to make a difference in local and global communities.
Companies tend to be a group of like-minded, talented people who work to gain a broader perspective. If you can get a CSR program that aligns with company values, your business has the potential to create a positive impact.
4. Increase investment opportunities
People tend to invest more in organizations that are committed to contributing to the environment in which they operate.
5. Increases customer retention and loyalty
Excellent CSR allows the company to show consistency and win loyalty, which eventually translates into customer retention and increased sales. It goes back to basic principles of persuasion and proves to be a good way for businesses to show provided they follow business ethics and follow corporate social responsibility rules in India.
6. Risk Mitigation
We are very well aware that social and environmental risks affect businesses in a big way. It is a known fact that these factors affect the growth strategies of the organizations. Activities/projects undertaken as CSR have shown considerable results in Risk Mitigation.
