UNDERSTANDING CSR IN 2021Anil Birla | August 18, 2021
THE CSR PRESENCE
Needless to say, CSR is a vital part of reducing the problems faced in the Indian market and to developing a sustainable socioeconomic environment. This will not only determine the complex relationship between economic systems and social structures but also the healthcare system. But how far can the corporate organisations in India go, to ensure an altered and better state of Occupational and Educational status of the ones in need?
For this, we need to understand the structuralisation of CSR in corporate organisations, aligned with the poverty levels of the Indian populace and how to maneuver through the funds to maintain an effective Corporate Social Responsibility policy.
EVERY BUSINESS NEEDS CSR
In fact, CSR is a useful tool and can be shown in various methods. From charities and ethical labor practices to employee volunteering and so much more, Corporate Social Responsibility plays a vital role in subsiding the imbalance in our society.
And if your business incorporates the basic laws of CSR, you are doing your bit to help the downtrodden.
Basic laws of a business, governing the CSR world
How Can CSR Benefit your Business, On a Personal Scale
CSR COSTS & HOW TO HANDLE THEM
A note for all the CFOs: There are some easy ways to invest and monitor your CSR funding.
The consumers of today have realigned the way big and small conglomerates look at their day-to-day activities, by making them rethink their ethical and moral business standards. The real question becomes, what specific cost should you be paying attention to when it comes to your corporate social responsibilities. Let’s start with the most important and basic point,
To put it simply, opportunity Costs can be overlooked, as the name suggests. Any activity that could not have been undertaken due to circumstances like certain elements like capital and labour being bound to the aforementioned activity.
All primary investments in inventory can be considered as Sunk Costs. These are an essential part of cost management and are something every CFO monitors to maintain good CSR.
increased wages, investment in social insurance, training, benefits for workers etc. fall under Recurrent Costs. These are unavoidable but if planned well, tremendously beneficial.
And why have we chosen these points as the top three points?
With proper understanding of the company’s expenses in the granular level, determines the growth of an organisation’s CSR planning.
TOP CSR TRENDS TO WATCH IN 2021
- Virtual Community Engagement
- Initiatives Closely Aligned with Current Events
- Closer Integration with the Internal Community (with employees) and Externally (surrounding communities)
- Stakeholders are the Target Audience, not Just Shareholders