In today’s world people across the world are more concerned about the environment than before so that they can give their coming generation a better to live in. As the corporate world started playing an increasingly vital role in the affairs of the world, it became important that it should become responsible for the consequences of its decisions and activities that they undertake in order to expand their business. Because of this organizations are now making social responsibility a top most and prime priority in their business function.
Corporate Social Responsibility (CSR) refers to operating a business in such a way that accounts for the social and environmental development created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations.
Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations. It is also known as corporate conscience, corporate citizenship or responsible business.
Most consumers’ believe that while achieving business targets, companies should do CSR at the same time. Companies that do charity always receives a positive response.
“The measure of any enterprise or institution is not what it says about itself, but what others say about it, and whether they choose to deal with it- as employees, as clients, as investors, as fellow global citizens.”
Goodwill of an enterprise can’t be valued only on basis of ” how much its shareholders are enriched”. It’s a joint place of work in which the employees, the customers, management, stakeholders, the government and the society go hand in hand. Thus, one basic principle of CSR is sustainable development where an enterprise must finalize its decisions after having analyzed its long term effects on the society as well on environment.
Emphasis on social environmental and economic sustainability has become a focus of many almost every big firms. Socially responsible investors have been a key catalyst asking companies to develop a CSR agenda. It provides a healthy and safe environment.
Profit maximization, expansion of business, survival and growth can easily be achieved by fixing high cost of goods or services but for the short period only. For consistency and long-run profits, a firm has to adopt CSR.