Published 11 August, 2020

Corporate Social Responsibility – The Apparent and Non Apparent Benefits? (4 minutes read)

You have the power to influence your mood by the choices you make every day. When you do something good for others, without expecting any returns you feel very happy because the happy hormones are released in your bloodstream. The purpose of CSR is to give back to the community, take part in philanthropic causes, and provide positive social value. Businesses are increasingly turning to CSR to make a difference and build a positive brand around their company.

The concept of CSR emphasizes on three responsibilities of a business enterprise: social, economic, and environmental responsibilities. These responsibilities are necessary to ensure economic prosperity, environmental quality, and social justice. It's concerned with protecting the interests of all stakeholders, such as employees, customers, suppliers, and the communities in which businesses operate.

CSR demonstrates that you're a business that takes an interest in wider social issues, rather than just those that impact your profit margins, which will attract customers who share the same values. Therefore, it makes good business sense to operate sustainably.

The companies are involved in CSR because being a socially responsible company can bolster a company's image and build its brand. Corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.

Some of the most common examples of CSR include:

  • Reducing carbon footprints.
  • Improving labour policies.
  • Participating in fair trade.
  • Charitable giving.
  • Volunteering in the community.
  • Corporate policies that benefit the environment.
  • Socially and environmentally conscious investments.

In August, the government of India passed a legislation that requires large companies to spend at least 2 percent of their profits every year on corporate social responsibility (CSR). Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any CSR compliance.

The potential benefits of CSR to companies include:

  • Better brand recognition.
  • Positive business reputation.
  • Increased sales and customer loyalty.
  • Operational costs savings.
  • Better financial performance.
  • Greater ability to attract talent and retain staff.
  • Organisational growth.
  • Easier access to capital.

One of the benefits which is not very apparent of having regular CSR activities in an organization is that it creates belongingness among the employees. You pick any research on employee motivation and engagement and it would tell you that employees thrive in an environment where they belong. It is in fact a human trait and not just limited to professional set ups.Engaging as a team in the act of contribution provides a new facet to individuals and creates a much greater degree of engagement. It also communicates to the employees that their employer is not just about sterile business but the company has a heart and a social consciousness.

Forward looking and inclusive organizations would look at CSR as an opportunity rather than a chore. The way they would approach the act of CSR would communicate their commitment towards the cause and you must know that employees are not naïve that they won’t notice it.

So, the ripple effects of having a committed approach to Corporate Social Responsibility brings in a lot of benefits when it comes to engaging and motivation the workforce. A culture of contribution goes a long way in building a strong employer brand.

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