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Home Articles

The Value of Corporate Social Responsibility (CSR)

The 2013 Act played a vital role in converting the Corporate Social Responsibility (CSR) from a voluntary activity.

India CSR by India CSR
December 11, 2020
in Articles, Prime
Reading Time: 3 mins read
At many businesses, Corporate Social Responsibility (CSR) activities have been designed to put a smile on the faces of every individual it serves. Company contributes to developing the local communities in and around the areas where it does business.

Copyright@IndiaCSR&CartoonWatch

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Since the times of the barter system to the present era of plastic money, mankind has striven out a long path. There is no doubt in this that “profitability” has always been the primary force and main motivation behind all this development.

This motive actually increased cut throat competition between the business forms. Because of this competition, the companies started exploiting the quality of product as well as the environmental concern. Slowly and gradually the business houses realized that they have to give back to the society because they are surviving because of the society only.

This realization gives the birth to the concept of Corporate Social Responsibility. However, the companies started using this concept for brand building more than delivering it as a responsibility. The studies also revealed that the companies used the corporate social responsibility for enhancing their profit as well.  

Corporate Social Responsibility refers to the management model according to which business firms take care of the society and environment as their social responsibility. The society pays the price in terms of pollution and other difficulties for business to run smoothly. Even the human society suffered with a number of new diseases because of the environmental changes coming because of the industrial pollution.

However, in the present era companies are using as most of a business strategy to take competitive advantage over others as well as to enhance the profit to the companies.

A properly executed CSR concept can result in huge competitive advantages, such as better access to capital and markets, boosted sales and profits, operational cost reserves, enhanced productivity and quality, competent human resource, value-added and status, improved customer loyalty, enhanced decision-making and risk management processes.

The CSR can be understood as a responsibility of business wherein the business not only takes care of the internal stakeholder (i.e., Shareholders, Workers) but also the external stakeholder (i.e., society, nature) as well.  

The 2013 Act offers a chance to catch up and make our corporate regulations more contemporary, as also potentially to make our corporate governing framework a model to imitate for other economic systems with similar physiognomies. The 2013 Act is more of a rule-based legislation comprising only 470 sections, which refers that the extensive part to the regulation will be in the form of rules.

The 2013 Act played a vital role in converting the Corporate Social Responsibility (CSR) activities as law from a voluntary activity. Now the corporate houses have a legal obligation to perform the CSR and have to spend 2% of their profit in the societal works.

The main objective of the CSR law is to enhance the lives of the individuals and exceed profit-and-loss matters for businesses or individuals. Thus the CSR can be defined as the responsibility to the business to defend, sphere and foster human values and endorse socio-economic welfare.

CSR is frequently understood interchangeably with philanthropy. While philanthropy can be said to be a vital vehicle for doing welfare, it is certainly not homogeneously disseminated across time and space within the whole social sector. CSR can actually be referred to as the concentrated effort by the organizations to coexist with society and nature.

Now with the changing systems and the activities, the previous concept of CSR has little changed to be in more of an isolated form and profitable concept.

The 2013 Act played a vital role in converting the Corporate Social Responsibility (CSR) from a voluntary activity. Now the corporate houses have a legal obligation to perform the CSR and have to spend 2% of their profit in the societal works.  

The main objective of the CSR law is to enhance the lives of the individuals and exceed profit-and-loss matters for businesses or individuals. Thus the CSR can be defined as the responsibility to the business to defend, sphere and foster human values and endorse socio-economic welfare.

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Tags: Corporate Social Responsibility (CSR) and Employee EngagementCorporate Social Responsibility in IndiaThe Value of Corporate Social Responsibility (CSR)

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India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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