Corporate Social Responsibility

    
  Business dictionary defines CSR or Corporate Social Responsibility as "A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship through their waste and pollution reduction processes,by contributing educational and social programs and by earning adequate returns on the employed resources." But why should corporations be socially responsible?

http://www.kevaind.org/images/CSR.jpg

1. It Builds Customer Relations

     Nowadays, companies are engaged in CSR not as a marketing move, but as a long term investment. It can be a challenging part but more businesses are taking that challenge to do good and to take pride in their workplace. Companies are seeing the return on investment as a result because more consumers are motivated to use products or services from companies that makes a difference in their community. However, the main purpose of CSR is not to attract more consumers but to show true commitment in helping other people and taking care for our environment.

2. Innovation

   CSR could also lead to innovation. Take for example of Unilever. Through sustainability, researchers were able to innovate new products such as a hair conditioner that uses less water. Geoff McDonald who is the Unilever Global VP for HR, Marketing, Communications and Sustainability said that "Without sustainability, the company’s research and development efforts possibly wouldn’t have led to such a product."

3. Cost Savings

     By going green means companies would embrace reduce, reuse and recycle. Whether it's paperless transactions or using lesser energy, these savings would add up quickly. CSR can cut company's costs while saving our environment.

4. It Builds Employee Relations

     One of the benefits that a company would get from CSR is creating a positive environment for the employees. Through CSR, employees can build a sense of community and camaraderie which makes them happier and productive.

   Companies become involved in CSR for different reasons. Whatever it is, businesses have the greatest potential in helping the community. This is not to say that CSR is the answer to the world's problem but it would certainly make a big difference.


Resources:
http://www.kevaind.org/images/CSR.jpg
http://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/
http://www.ibox-security.co.uk/about-us/corporate-social-responsibility-csr/