CSR incorporates individual purpose into an organization’s basic philosophy and objective in order to aid broader, societal problems, which is critical right now.
By Sayeed Ahmed
Corporate social responsibility is integral to any business, regardless of its size. With the outbreak of COVID-19, we have been convinced that there is a dire need for individuals and corporations to reiterate the need for “Responsibility.” Although the pandemic led to situations where companies ran out of funds or struggled to tackle multiple financial roadblocks, there was no denying that the world witnessed incredible acts of goodness and kindness from every possible direction. Even though at a lesser capacity due to the financial crisis, big or mid-sized corporations didnโt hesitate and continued practicing CSR activities in the form of funding, donations, or relief campaigns during the time of darkness. The pandemic and several other instances, like the economic recession, proved to be the best times to indulge in CSR activities as they emphasized the importance of accountability and the responsibility we share as citizens, businesspeople, and beings that are generously utilizing the resources of the planet.
With such instances, it has been established that the industry has a huge role in nation-building. Corporate social responsibility includes not just what businesses do with their revenues but also how they generate them. The ethical generation of money that is later contributed to welfare activities is the magnum opus of CSR. It extends beyond charity and affiliation; it aims to examine how businesses manage their economic, social, and environmental consequences.
Business organizations wield economic power; the money they generate comes from society, and as its stewards, they must use that influence to address social and environmental challenges. Customers trust and choose products from firms that follow ethical principles and show a visible interest in larger social and ecological concerns. The sustainability of economic growth and the long-term existence of enterprises are dependent on environmental protection and helping the community around us flourish economically. CSR incorporates individual purpose into an organization’s basic philosophy and objective in order to aid broader, societal problems, which is critical right now.
CSR has been made mandatory in India through Section 8 of the Companies Act, 2013. Imposing a statutory obligation enables businesses to channel their economic stream for the greater good. CSR is the ideal way to give back to the community. Opting for the CSR method suggests a way of bridging the inequitable distribution of wealth by streamlining the money towards the right cause. Although the total CSR amount available to the business community is very small compared to the national developmental budget, its wise spending would have a worthwhile impact on society and people, assist the governmentโs efforts, and help preserve our planet to some extent.
CSR as a concept is known amongst companies, but with regard to it being a hygiene practice, CSR still has a long way to go. A thorough public communication campaign targeted at boosting awareness levels and controlling views would be required to promote CSR, in addition to providing the adequate required facilities and infrastructure. People will support new efforts only when they recognise the flaws in existing systems and practices and begin to see the benefits of change. Specialists from medical, agriculture, rainwater harvesting, waste management, and other sectors should be consulted as needed.
Since globalization has increased, corporations have recognized corporate social responsibility as a crucial duty for the entire firm, not only for setting long-term business strategy but also for its marketers. Extra measures towards improving social responsibility and sustainability can provide a firm with a distinct source of competitive advantage. If this competitive advantage is tightly related to the firm, its operations, and its image, it has long-term benefits not just for the company but also for society as a whole. Social responsibility initiatives may be used as a marketing communication topic. These efforts can add value to a product or service, which can be a deciding factor in the purchase decisions of consumers who care about social responsibility.
Biesse Indiaโs CSR initiatives are driven to focus on skill development, the welfare of the local communities, enhancing standards of basic education and environmental protection. Focus on skill development as one of the important economic development needs has helped establish the Advanced Woodworking Training Center at the Institute of Wood Sciences and Technology, Bangalore, as well as at KIET in Noida. These are unique vocational training centers in the country, promoting both skill development and entrepreneurship in the woodworking industry. Initiatives for community development like providing safe drinking water facilities, renovation and upgradation of schools, establishing computer labs in educational institutions, enhancing infrastructure in local police stations and planting trees for environmental sustainability have impacted the society around us, strengthening coexistence relationships, bringing pride among employees of being part of a group that takes its societal responsibilities and delivers the same for sustainable economic growth. Sustainability is a transformational lever for Biesse Group, an essential tool for dealing with an evolving market in a volatile global context that will aid in long-term business success.
In recent years, the business world has seen a shift in how firms judge their performance. While financial performance and yearly growth are essential indicators of prosperity, businesses are also learning that their contributions to society are also being evaluated. Socially responsible companies may look more appealing to investors. Although it may seem insignificant in the complex world of business and trade, CSR has inevitable benefits for the growth of a nation.
