‘Corporate Social Responsibility’ is set of responsibilities based on ethics and law that an organization has towards the society. It’s a long term relationship of an organization with its consumers, revolving around actions that lead to long term profits. This concept can be traced back to 1800s. It is now accepted on a larger scale with both the sides with enough to gain.
Educational, medical and non-profit organizations etc. are funded and believed to be a beneficial investment in creating an environment that’ll be in the welfare of corporate world. It includes providing monetary assistance to a cause that is directed towards creating a sustainable environment and towards the improvement of the community. It is being a good citizen voluntarily.
It is also seen as a deviation from economic growth by the critics. However it is essential and has proven to be effective on a large scale where consumers prefer to stick with companies that practice Corporate Social Responsibility. * IBM study ‘Attaining Sustainable Growth through Corporate Social Responsibility’: The majority of business executives believe that CSR activities are giving their firms competitive advantage, primarily due to favorable responses from consumers. * Better Business Journey, UK Small Business Consortium: “88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.”
The application of corporate social responsibility in 60s and 70s; and the civil rights movement, consumerism, and environmentalism are the best examples that changed the way society expected the business world to act. It is an asset for validation in the society, in other words a company gets a social licence. This practice has led to employment opportunities, which is much required today. It helps building a reputation not just with the clients but with