If you, at this very moment, try to find the exact definition of Corporate Social Responsibility there’s a high probability that you would be confused.
It’s a highly flexible concept, that evolves differently changes from time to time and from company to company.
The basic concept of CSR took birth in the mid-20th century. Since then it has been established as standard aspect of most successful companies, becoming more in vogue as a best practice in the last decade.
According to Vardaan, CSR is a very basic and a fundamental business process which ensures that the Corporate engages in a responsible manner with its stakeholders (stakeholder and not only the shareholders)
India has lots of socio-economic challenges to be dealt with. By making CSR mandatory for certain categories of specified companies.The government has made the top businesses in the country responsible for their country’s development. According to estimates the CSR spend in India amounts to a cash flow of over INR 100 billion per annum. When an amount in this magnum is put into good use, it is bound to accelerate the development of a society.
CSR, today, can be performed in any of the sectors like education, healthcare, environmental, humanitarian crises, and many more. In this piece, lets focus on the environmental sector that deals especially with waste management.
Keeping Up With CSR Trends: Why Green Is The New Black
What if waste, as we know, totally disappears from the face of the earth?
If you, at this very moment, try to find the exact definition of Corporate Social Responsibility there’s a high probability that you would be confused.
It’s a highly flexible concept, that evolves differently changes from time to time and from company to company.
The basic concept of CSR took birth in the mid-20th century. Since then it has been established as standard aspect of most successful companies, becoming more in vogue as a best practice in the last decade.
According to Vardaan, CSR is a very basic and a fundamental business process which ensures that the Corporate engages in a responsible manner with its stakeholders (stakeholder and not only the shareholders)
India has lots of socio-economic challenges to be dealt with. By making CSR mandatory for certain categories of specified companies.The government has made the top businesses in the country responsible for their country’s development. According to estimates the CSR spend in India amounts to a cash flow of over INR 100 billion per annum. When an amount in this magnum is put into good use, it is bound to accelerate the development of a society.
CSR, today, can be performed in any of the sectors like education, healthcare, environmental, humanitarian crises, and many more. In this piece, lets focus on the environmental sector that deals especially with waste management.
If you, at this very moment, try to find the exact definition of Corporate Social Responsibility there’s a high probability that you would be confused.
It’s a highly flexible concept, that evolves differently changes from time to time and from company to company.
The basic concept of CSR took birth in the mid-20th century. Since then it has been established as standard aspect of most successful companies, becoming more in vogue as a best practice in the last decade.
According to Vardaan, CSR is a very basic and a fundamental business process which ensures that the Corporate engages in a responsible manner with its stakeholders (stakeholder and not only the shareholders)
India has lots of socio-economic challenges to be dealt with. By making CSR mandatory for certain categories of specified companies.The government has made the top businesses in the country responsible for their country’s development. According to estimates the CSR spend in India amounts to a cash flow of over INR 100 billion per annum. When an amount in this magnum is put into good use, it is bound to accelerate the development of a society.
CSR, today, can be performed in any of the sectors like education, healthcare, environmental, humanitarian crises, and many more. In this piece, lets focus on the environmental sector that deals especially with waste management.
It’s clear in the above example that a company’s role in CSR affects the thought processes of its employees. Offering exemplary salaries, perks, and positions just won’t cut it anymore. Employees want to know how their company is giving back to society, and without this information, they tend toward dissatisfaction. And an increase in employee turnover rates is a direct outcome of this anxiety.
Over the last decade or so, many organisations in India have changed the way they approach CSR. Gone are the days when CSR was considered nothing more than ‘social tax’. With big companies like Tata and Wipro displaying how easy it is to facilitate organisational growth through CSR, smaller organisations soon followed suit. Now, we even have fierce competition between rival companies to see who runs a better CSR campaign than the other. For example, PepsiCo and Coca-Cola are constantly trying outdo each other when it comes to water conservation and recycling. In fact, PepsiCo even runs a Positive Water Balance initiative which aims at recycling and conserving more water than they utilise.
And despite all this, they still continue to be in the top three wholesale retailers of USA. While their competitors are afraid of facing a loss if they grant employees leave and shut shop on public holidays, Costco realises that a workforce which is motivated and happy is the key to running a successful business.
In India, HCL runs a ‘Teach At Office’ program. Realising the importance of its support staff, they hold free classes on basic computer skills and conversational English. To complement these classes, they also hold workshops on basic etiquette, financial management, and health and hygiene.
So what’s the one thing that’s common between Costco, HCL, and ITC Limited? All three are market leaders in their respective sectors. Costco is among the top 3 retailers in the USA, HCL Technologies is one of the top 20 largest publicly traded companies in India, and ITC is a market leader in the tobacco sector and the largest supplier of stationery and branded food products in India.
These three organisations make it quite evident that finding a balance between profit and purpose isn’t hard. No matter how disconnected they may seem, the two don’t need to sit at opposite ends of the scale. Any organisation with a good CSR strategy can easily cater to a societal cause and still derive enough profit to stay ahead of the competition. If you look at the bigger picture, you’ll see that any business will eventually stagnate if it doesn’t seriously consider doing a little bit more than making money.
To summarise what you just read, we’ll quote Alan Edmans one last time, ‘Businesses exist to serve a purpose. And by doing so, and only by doing so, will they generate profits in the long run. To reach the land of profit, follow the road of purpose.’
Let’s take a look at the things you should keep in mind while selecting NGOs who’ll bring value to your CSR efforts.
It’s also important that you choose an NGO which is well respected amongst your employees, investors and customers. This move can potentially lead to a fair increase in stakeholder engagement.
And in a bid to rapidly improve their workforce’s skill base, HCL’s Teach At Office program provides support staff with a range of workshops on basic etiquette, financial management, and health and hygiene. They are also taught basic computer skills and are trained in conversational English. This not only helps them become more dedicated employees, but empowers a section of society that is increasingly neglected in a tech-dominated world.
IBM, with the help of its Reinventing Education Program has integrated Information and Communication Technology and pedagogy tools in 50 government schools to make learning fun and simple. Aside from that, with the Transformed Classroom model, they have managed to empower over 600 teachers and given over 7000 students in 90 schools a better standard of learning.
Every company knows how hard it is to gain customers and retain them for a long time. CSR can help businesses reel in customers with relative ease, and keep them engaged for the long run. According to studies done in 2012 by Cone Communications and the results of the 2012 Corporate Social Return Trend Tracker, 86% of respondents were more likely to trust companies that reported the results of their CSR efforts. In addition, 82% of those surveyed were also more likely to purchase products or services from companies that demonstrated their CSR results over those that didn’t.
People want to support businesses that do good for the community, because if they help the organisation, they indirectly help themselves. Just to reiterate how important customer engagement is, 40% of those surveyed would not even consider purchasing from companies which didn’t publish their CSR results. If an organisation does careful market research, and involves itself—transparently— in a socially relevant cause, it could lead to a massive increase in its consumer base.
The beauty of CSR lies in the countless ways in which it can be implemented. You don’t always have to look for something on the outside to invest in. Allocating capital towards little things like recycling of waste or alternative sources of energy can save you a lot more money than you expect.
Smart businesses not only recycle waste but also try & use the waste to incorporate it in its business model. And if this happens in a manufacturing process it hugely impacts the bottom- line.
Energy costs are extremely high these days and any organisation can reduce this expenditure by implementing energy efficiency programs in their businesses. Not only do you conserve precious energy resources, you’re setting up a system that leads to huge savings at the end of the year.
A well-designed CSR strategy can be perfect bait for big investors. Being involved with a social cause outside your business domain makes you competitive and reduces the risk of sudden damage to your reputation, and your sales. Most investors will see this and readily invest in your company.
Adeline Hinderer, Trade Counselor for the European Union to the US, says, “Companies are actively demonstrating to investors that corporate social responsibility makes good business sense, and the firms are already seeing the benefits it can bring them in terms of risk management and attracting investment.” Additionally, investors are more likely to give money to businesses which are involved in supporting a cause they also support.
