Corporate Social Responsibility (CSR) refers to a business practice that involves participating in initiative that gives benefits to the society. CSR is about how companies manage the business processes to produce an overall positive impact on society. ‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’ is the definition used by the World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts. Business function as part of society and the success of one affects others. A Report of Harvard Business Review pointed out that there is strong kink between the CSR and Profitability.
CSR ensures that companies conduct their business in ethical way. Taking into account their social, economic and environmental impact and consideration of human rights. There are two different types of corporate social responsibility. The first one consists of corporations providing funding and resources for worthwhile social causes, such as donating money or employee time to charities. For many people, this is the definition used when thinking about corporate responsibility. However, another type of CSR involves putting together a real plan to produce products or provide services that are in the best interests of society. These include things like using safe materials in design and manufacture, corporate environmental initiatives, and other factors such as job creation and economic development.
The companies should make genuine contribution to charitable and social cause. The CSR activities can improve their brand reputation, attract more job candidates and customers and increase employee engagement. It can be source of opportunity, innovation and competitive advantages. Because of these reasons CSR is becoming more mainstream as forward thinking companies embed sustainability into core of their business operation to create share value for business and society. Sustainability isn’t just important for people and the planet, but is also vital for the business success.
