Corporate social responsibility

Corporate social responsibility

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  Corporate Social Responsibility(CSR) is generally used to describe business’s efforts to achieve sustainable outcomes by committing to good business practices and standards. While the concept may be relatively new in the region, the actual practices and related policies are not new. The key role and responsibility are often discussed in the aspects of business, social and the environment.Why CSR?Your Source of Competitive AdvantageMost businesses compete either on price, level of quality or service as their competitive advantage. Non-profit organizations often use efficiency, values of service or societal benefit to generate their competitive advantage. Can your organization or direct competitors tap on additional economic, environmental or social advantages that can be used for competitive purposes, such as community support, better brand identity, reduced waste disposal costs or better employee working conditions?Today consumers, investors, governments and even employees have become more sophisticated and more aware of good corporate behavior, or lack thereof. In this new business environment, a company's reputation has become one of its most valuable assets, and CSR has become one of the key components of corporate reputation.Positive CSR experiences build confidence and goodwill with stakeholders. Many organizations have developed clear CSR efforts as strategic branding and management approach in achieving a win-win outcome. Their number continues to grow. What about yours? back to topThe Business Case for CSRCSR is increasingly being seen as an important and integral part of normal business operations. So h ow does responsible business help to enhance business operations, in achieving a sustainable outcome?Create Shareholder Value Investors are becoming more concerned to invest in company’s that act with good corporate governance and social responsibility. Increasingly, a company’s performance as a responsible business is key to its financial and stock market standing, helping to protect it from instability and share price volatility.Increased Revenue Base CSR can boost factors that drive revenue in important ways. CSR initiatives and cause-related marketing could build reputation and goodwill among suppliers and customers. Employees who identified with the social mission are likely to be motivated, committed and more prepared to make sacrifices as a team member.Strategic Branding A company’s reputation is fundamental in maintaining and attracting new customer base. Consumers today are more sophisticated, becoming more selective and sensitive to a company’s image and CSR efforts. A distinctive CSR profile serves as a strategic branding tool in differentiating from competitors.Operations Efficiency The efficiency of a business is about productivity and effective use of resources. CSR can help to increase efficiency through environment conservation and recycling initiatives, as part of Eco-efficiency strategy. Positive management-employee relations are also crucial in bringing about good customer service, productivity and product innovation.Better Access to Capital Access to capital enables a company to grow and make timely investment. Companies with good CSR standing are likely able to secure equity and debt capital with most ease. The growth emphasis in Socially Responsible Investment (SRI) is a clear indication of likely future trends.Human & Intellectual Capital A company’s human and intellectual capital is one of its most valuable assets. Good workplace conditions and relations can help a company to attract, keep and develop human capital, keeping operations and staff morale high. Community involvement can play a complementary role in developing new skills set, encouraging participation, sharing and team spirit in the workplace as well.Lower Business Risk Companies are being held increasingly accountable for their actions today. Such business risk could affect reputation, access to capital and even long-term viability in some instance. Proactive dialogue with external stakeholders can help to foster understanding, in preempting and minimizing the repercussions.back to topIs CSR for SMEs?Pursuing responsible business practices can help any business enhance reputation and standing in building trust from stakeholders, generating sales, boosting enthusiasm and product innovation. It can be important to the Small and Medium-sized Enterprises (SMEs).For so many, social responsibility is just a new way to describe something they do already. In this context, CSR does not aim to reinvent the wheel. It is about building on existing practice, maximising its impact and making a link between CSR and your core business activities.In many instances, SMEs are ideally placed to pursue such responsible workplace practices. SMEs often have longstanding contacts in servicing a local area and are well placed to understand and benefit from the community relations. Being more flexible and less formal than large companies, they can direct resources to CSR efforts more effectively. Certain CSR trends are already a part of SME culture. For example, SMEs in certain sectors are more likely to have family-friendly workplace practices in a less bureaucratic setting.<br />ITC Limited<br />ITC partnered the Indian farmer for close to a century. ITC is now engaged in elevating this partnership to a new paradigm by leveraging information technology through its trailblazing 'e-Choupal' initiative. ITC is significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoodsby helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched drylands; empowering rural women by helping them evolve into entrepreneurs; and providing infrastructural support to make schools exciting for village children.Through these rural partnerships, ITC touches the lives of nearly 3 million villagers across India.<br />ICICI Bank Ltd<br />The Social Initiatives Group (SIG) of ICICI Bank Ltd works with a mission to build the capacities of the poorest of the poor to participate in the larger economy. The group identifies and supports initiatives designed to break the intergenerational cycle of poor health and nutrition, ensure essential early childhood education and schooling as well as access to basic financial services.Thus, by promoting early child health, catalyzing universal elementary education and maximizing access to micro financial services, ICICI Bank believes that it can build the capacities of India’s poor to participate in larger socio-economic processes and thereby spur the overall development of the country. The SIG works by understanding the status of existing systems of service delivery and identifying critical knowledge and practice gaps in their functioning. It locates cost effective and scalable initiatives and approaches that have the potential to address these gaps and supports research to understand their impact. This is undertakenin collaboration with research agencies, nongovernmental organisations (NGOs), companies, government departments, local stakeholders and international organisations.<br />Infosys Technologies Limited<br />Infosys is actively involved in various community development programs.Infosys promoted, in 1996, the Infosys Foundation as a not-for-profit trust to which it contributes up to 1%PAT every year. Additionally, the Education and ResearchDepartment (E&R) at Infosys also works with employee volunteers on community development projects. Infosys leadership has set examples in the area of corporate citizenship and has involved itself actively in key national bodies. They have taken initiatives to work in the areas of Research and Education, Community Service,Rural Reach Programme, Employment, Welfare activities undertaken by the Infosys Foundation, Healthcare for the poor, Education and Arts & Culture.<br />Tata Consultancy Services<br />The Adult Literacy Program (ALP) was conceived and set up by Dr. F C Kohli along with Prof. P N Murthy and Prof. Kesav Nori of Tata Consultancy Services in May 2000 to address the problem of illiteracy. ALP believes illiteracy is a major social concern affecting a third of the Indian population comprising old and young adults. To accelerate the rate of learning, it uses a TCS-designed Computer–Based Functional Literacy Method (CBFL), an innovative teaching strategy that uses multimedia software to teach adults to read within about 40 learning hours.<br />