Over the years CSR has been much debated subject for organizations globally, and the influence it leave’s on organizations is enormous. However, there are pervasive misconceptions exist in people’s perception as to how does it impact organizations and what characteristics has it got in order to implement and to capitalize in both short and long run.
Before going any further bit of a summary is inevitable here as to what CSR is? Hence, CSR symbolizes as instrument that addresses, executes and evaluates issues which are affecting societies, people and organizations in general. It compels organizations to think that they also have social impacts as being corporates. Therefore, must become good corporate citizen as we humans should. Therefore, CSR got to be an imperative part of corporate strategy in sectors where inconsistencies arise between profits and social goals. A number of CSR initiatives make people and organization aware those actions that affect all the stakeholder positively needs to be undertaken in order to enhance fairness and transparency.
CSR programs have significant role to play in the society and offer win-win situation for everyone, if they are executed effectively. Research suggests that organizations shouldn’t just emphasis on their customers and profitability, but also the good of the wider communities e.g. local and global within which they exist. Following are the recommended measures that not only tend to guard organizations against reputational risk but also improve their profits as well.
- Economic responsibility to generate profit, provide job and create a kind of authentic product that consumers want
- Legal responsibility to comply with local, state and international laws.
- Ethical responsibility to meet other social expectations i.e. not written in law such as avoiding harm or social injury, respecting people’s moral rights, doing what is right or justified.
- Discretionary responsibility to carry out activities that society finds desirable such as offering resource to cultural enterprises, providing benefits to employees and doing desirable for local environment and state issues.
- Apparently, doing the right things by organizations is the motivational factor for consumers combined by press and media influence; ultimately it entices them to pay even more for ethical organizational goods.
- Integrate philanthropy activities, community Involvement with the company’s overall CSR strategy.
- Making a real difference in the community
- Establish, maintain, and enhance relationships of trust with stakeholders.
In some countries carrying out CSR programs is mandatory for public and private companies such as in UK & India nearly all leading corporate are involved in CSR programs in areas like health, education and empowering underprivileged background people. However, lot more need to be done in order to see the real difference in the society.
Currently, it is also seen an activity just to pretend and influence people that something is being done for the society with the help of print and broadcast media. Apparently, this way real objective is far from achieving. Henceforth, if initiatives are implemented the way they should be, then it creates a huge amount of trust and enhance reputation of the company. As distinguished writer Philip Kotler said that reputation is the most important thing than any other characteristic, as it is about ability to perform effectively and living out personal values, it is one of those factors that set organisations aside from their competitors.
In the end all organisations should take this call to achieve inclusive objective by taking care of all the stakeholder in the society be it employees, consumers, government authorities or shareholders. In addition, CSR is the most urgent issue that continues to grow in importance and integral components of that path to growth, thus it cannot be ignored in modern business environment; as it touches every part of business and help company culture to succeed.