The Complete Beginner's Guide to Corporate Social Responsibility (CSR)

What is CSR? Corporate Social Responsibility (CSR) refers to the practices and arrangements attempted by enterprises that are expecting to have a positive impact on the world.

Typs of CSR

CSR is categorized into four responsibilities. These are:

  • Ethical responsibility: Ethical responsibility is about taking care of the employees by ensuring fair labour practices for the employees and the employees of their suppliers.
  • Economic responsibility: Economic responsibility is an interconnected field that focuses to maintain a balance between environment, business, and philanthropic practices.
  • Philanthropic responsibility: Philanthropic responsibility implies serving humankind. This pays attention to the well-being of the unprivileged or poor individuals, who require support to survive on this planet.
  • Environmental responsibility: As of now, we need to focus on two fundamental zones of our environment: restricting contamination and decreasing greenhouse gases. Companies are bound to take fundamental steps to save our planet and protect it for the future generation.

Objectives of CSR

  • To offer an unbiased and valid platform to all shareholders, who are involved in CSR practices, for dealing with significant issues to encourage sustainable development.
  • To provide training, capacity building, and other related support within the field of CSR.
  • To encourage the exchange of ideas and experiences among different partners for strengthening CSR initiatives.
  • To encourage any other help which looks forward to uplift CSR practices.
  • To set up the connection between different associations from all over the world, which promote CSR activities.
  • To collaborate and to assist any person, company, institute in adopting various practices in CSR.

 

Merits of CSR

         
 
Merits
 
Demerits
 
         
 
 
 
 
 
 
Enhances goodwill of a company.
 
Increase in the cost of production.
 
 
 
 
 
 
 
Enhances attraction of customers and helps in retention of employees.
 
Implementation of CSR needs money which means less overall profit to the company.
 
 
 
 
 
 
 
Regulatory authorities often lay more focus on the companies that do not perform CSR for scrutiny, over the companies that do.
 
Some investors resist investing in companies that are practicing CSR because their reputation is then always at stake.
 
 
 
 
 
 
 
Attract global investors. The company will also get foreign investors in the form of FDI. In some cases, the government of the country also reflects its willingness to invest in the company.
 
Does not provide any instant results. The results are shown in the long-term which makes customers impatient.
 
         

 

Why CSR is important for your company?

The Complete Beginner Guide_EN

  • Better involvement of employees: Employees that feel respected by their organization feel more comfortable in bringing their best self to work, which leads to maximum involvement.
  • Faithful clients: Users think deliberately around the goods and services they purchase. Consumers will be more faithful towards your company if your values match with theirs.
  • Positive open consideration: Progressive CSR marks your organization as a pioneer within the community and an example for others to follow. Other than, when companies stand out for the good work they’re doing within the community, the media highlights them. 

 

Impact of CSR

The concept of corporate social responsibility is firmly settled on the worldwide trade market. In CSR practices, additional efforts have been taken to eradicate child labour, which falls under unethical labour practice. Even though CSR is most commonly promoted by bigger organizations, small enterprises are also taking interest in CSR through their best capable scale (e.g., supporting local charities and events).

Conclusion

     
 

To conclude, CSR is not a rule, which needs to be followed by a company, but a responsibility, that should be taken by everyone.
To know more about sustainability, click to the next blog for getting an insight on Life Cycle Assessment.


Feel free to get a personalized consultation regarding CSR issues from Dr. Denise Ott.

 
     

 

Author: Shashank Goyal

Dr. Denise Ott

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