Corporate social responsibility is a business model that is self-regulated and it holds the companies to be socially accountable to the stake holders and the public. There can be four business responsibilities.
- Environment efforts: A company can take efforts in making our surroundings better. It can contribute to society by manging waste products or by careful use of raw material during production. For example if we talk about Apple it has committed to mediate the effect of climate change. It has pledged to plant 27 thousand mangrove trees in Colombia.
- Philanthropy: There are various ways in which a company can practice social responsibility. Large companies can do so by donating products or services. They also have the option of donating money. Small companies can reach out to society or organize a charity programme.
- Ethical labour practice: In this case CSR can be carried out if the employees are treated fairly and ethically.
- Volunteering: By volunteering companies time in social events says a lot about companies sincerity.
Let’s talk about Starbucks. It has implemented a socially hiring process in order to diversify the workforce they have. They have focused on hiring refugees, young youth who are starting to build their career and veterans.
Importance of corporate social responsibility
- Corporate social responsibility gives the society an opportunity to work for the betterment of the environment.
Bringing light in someone’s life is altogether a different feeling. Let’s talk about an organisation who has pledged to teach children of a particular village. This will not only give inner satisfaction to the employees but also pride and contentment.
- Corporate social responsibility helps in building a positive image of a company. Corporate social responsibility develops a positive attitude in the eyes of public towards the company. Therefore people prefer to use the products of a company with positive image.
- Corporate social responsibility gives a feeling of unparalleled happiness to the staff. Helping others makes a person happy. And corporate social responsibility gives the employees immense pleasure and self-satisfaction because they were able to contribute toward the society.
- It ensures respect for the human rights. It ensures that all the employees are treated fairly and ethically. It develops a feeling of understanding among the employees. It also creates respect in the employees for the public.
Need of corporate social responsibility
1. Creates better public image
A company can enhance its public image by accepting the social responsibility. It also helps in gaining more customers, skilful employees and increase in profits.
2. Conversion of resistance into resources
If a company can turn its ability into social problems then it can also turn its resistance into resources. This increases the function capacity of resources.
3. Business interest in long term
A firm that is sensitive towards community would like to conduct business in a better community and that is its own self-interest. A better society would produce a better business environment in which business can gain long term maximization of profit.