Economic Perception of Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) plays a great role and positively impacts business and the economy. In past years many organizations have shown a holistic approach toward CSR. Today is not only necessary for the economy or business. However, it’s a consumer-driven demand. The economic prospective of CSR helps the environment and society. Not only this, but it also boosts the morale of employees and people. But What is the meaning of Corporate Social Responsibility? Scroll on this page to learn more…

Concept of Corporate Social Responsibility (CSR)

Corporate social responsibility can be defined as the systematic commitment of a business towards sustainable development in the economy. Also, this policy enables to improve the standard of living of the people thus impacting their lives in the society.

In order to create an equitable environment for various classes of people, CSR has been developed in the World economy. The essential components of CSR include: consumer issues, fair operating issues, labor practices, and community involvement, & development, human rights and so on.

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Business Organization implement CSR policies

Most of the companies have implemented the corporate self-regulation in their business as it helps them to establish the credibility of the industry. Some of the corporates Giants like Johnson & Johnson, Coca Cola, Ford Motors, Netflix, Pfizer, TATA, Rolex, Starbucks have started to serve the community through forms of donations, sanitation facilities and various other charity events.

Further, CSR policies, programs and practices are been implemented in all the major corporate companies ensuring to maximise the company’s overall impact on the society and stakeholders. Moreover, this concept can be termed as corporate philanthropy, corporate community involvement, global citizenship, corporate citizenship, corporate social marketing, community development, etc.

CSR for Small Medium Enterprises

Small and Medium Enterprises (SME) is considered to be the engine of the economic growth. Also this popular sector contributes of more than 90% of the total economy ensuring to help the employment generation and regional development.  

If small and medium enterprises implement CSR activities in their business, then it will help to build a positive image and increase the profitability in the business.

CSR for organization Employees and their customers

The CSR policies enable the employees to build smooth relationship with the customers and they develop a sense of loyalty for the organization. CSR programs help to build business & social value, integrate social responsibility throughout the year, define priorities, identify innovative opportunities, develop a framework for action and much more. Generally, the CSR is classified into four types, such as environmental CSR, community CSR, HR based CSR, philanthropy and so on.

CSR relation with business economy

CSR focusses on particular aspects ensuring to contribute a great value to the economy. If you implement CSR programs in your business model, then you can hold satisfied customers & employees, cost reductions, business opportunities, long term business future and more. Most of the companies have taken several CSR initiatives, such as social marketing, behaviour change campaigns, community volunteering, direct contribution to charity, raising funds and much more.

It is essential to know that corporate social responsibilityenable your business to maintain a perfect balance on economic profit and social responsibilities.

Therefore, the above information would definitely be useful for corporate business executives who are planning to implement the policies in their business module.