Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.
To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them.
In another words corporate social responsibility is a broad concept that can take many forms depending on the company and industry. Corporate social responsibility, or CSR, is the act of incorporating environmental and social concerns into a company’s planning and operations. These programs center around the idea that businesses can make the world a better place, or at the very least, they can reduce their negative social and environmental footprint on the world.
It is more likely for a brand to become popular if it is committed to social causes. More the people hear about your brand, the more brand awareness it will create. By implementing CSR practices, your brand will earn more recognition and will surely stand out in your industry. By doing so, you will create an image for your brand that will ensure that your brand is taking that one extra step by keeping in mind social and environmental dynamics. Each firm must enhance its public image to secure more customers, better employees, and higher profit. Acceptance of social responsibility goals lead to improve public image.
If the innovative ability of business is turned to social problems, many resistances can be transformed into resources and the functional capacity of resources can be increased many times.
A better society would produce a better environment in which the business may gain long term maximization of profit. A firm which is sensitive to community needs would in its own self-interest like to have a better community to conduct its business. To achieve this, it would implement social programs for social welfare.
Regulation and control are costly to business both in terms of money and energy and restrict its flexibility of decision making. Failure of businessmen to assume social responsibilities invites government to intervene and regulate or control their activities. The prudent course for business is to understand the limit of its power and how to use that power carefully and responsibly thereby avoiding government intervention. It helps in limiting state’s involvement in corporate affairs as companies self-regulate and act as most ethical.
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