It is true that within the past 200 years, our country received a massive boost in terms of industries and business yet a considerable percentage of the population lives in poverty. Material prosperity must not be the ultimate goal especially when it is causing human misery across the globe. There goes a famous line which says that poverty anywhere is a threat to prosperity everywhere.
Against such a backdrop, Corporate Social Responsibility advocates the expansion of business beyond economic gains.CSR is not about managing, reducing and avoiding risk. It is about creating opportunities, generating improved sustainable profitable performance for the people and the planet.
Since the beginning of the new millennium, many companies across the world have begun promoting their business with the help of CSR strategies because the public, investors and customers expect them to be responsible as well as sustainable. Corporate Social Responsibility can be defined in numerous ways. One of the simplest definitions of CSR is the activities a particular company undertakes to utilise its profits to allow social and environmental development.
One can have a look at the following points to get a brief idea about how Corporate Social Responsibility can be advantageous for your business.
- Ensure Long-Term Success-Corporate social responsibility goes a long way in creating a positive word of mouth for the organization on the whole. Doing something for your society, stakeholders, customers would not only take your business to a higher level but also ensure long-term growth and success.
- Positive PR-CSR plays a crucial role in making your brand popular not only among your competitors but also the media, other organizations and most importantly people who are your direct customers. In other words, it improves your business reputation among your clients.
- It will induce a sense of civic engagement in you-India loses 6% of its gross domestic product (GDP) annually because of premature deaths and preventable illnesses, donating money to charity will increase the GDP of your country and will contribute towards her progress. Hence, it is your duty as a responsible citizen of this society to donate money to charitable trusts.
- Make this society a better place-For the growth of a business, it is necessary to make the society a healthier and better place to live in.CSR activities contribute towards the positive development of the society. Your business will not progress until and unless problems like illiteracy and poverty are not solved.
Corporate Social Responsibility is not just a random act of kindness but is rooted in the company’s values. It is based on the idea that companies must consider the interests of the society while making business decisions. In other words, CSR is no longer considered good for business but is simply good business.