Corporate Social Responsibility isn’t a recently developed notion in India, nevertheless, the Ministry of Corporate Affairs, Government of India has lately notified Section 135 of the Companies Act, 2013 together with Companies (Corporate Social Responsibility Policy) Rules, 2014 “hereinafter CSR Rules” and other notifications related thereto which makes it mandatory (with effect from 1st April 2014) sure enough companies who fulfill the factors as mentioned under Sub Section 1 of Section 135 to befits the provisions relevant to Corporate Social Responsibility.
Corporate Social Responsibility (CSR) is well accepted among shareholders moreover like various other stakeholders of society in India. The term CSR may be a new normal for Indian organizations. Larger corporations understand that CSR is an integral part of a business framework for sustainable development. Companies also consider that CSR is an approach towards sustainable development and target the triple bottom line of Economic, Environmental, and Social performance.
In India, the term Corporate Social Responsibility (CSR) is widely being employed while related concepts and terms, like business accountability, sustainable development, philanthropy, sustainability, corporate citizenship, responsible business, triple bottom line, shared value, value creation, business ethics, socio-economic responsibility, the underside of the pyramid, stakeholder management, corporate responsibility, and company social performance.
The CSR ventures of Indian companies are in line with the provisions of Section 135 with Schedule VII to the Companies Act, 2013. The CSR efforts of companies advance on creating value within the lives of the communities around its areas of business and manufacturing operations.
The Benefits of a Strong CSR Polic:
Improves the image of a company:
CSR activities reflect positively on the image of a corporation. After you implement CSR policies in your company, it increases your goodwill. Consumers are going to be more willing to avail of your products and services due to the clean image of your company.
Attracts new investors:
A company’s reputation within the market decides whether it’ll receive new investments or not. With CSR programs, you’ll certainly boost your company’s image. And when your company starts to grab enough eyeballs, it also attracts several investors. Be ready to acquire investment proposals from venture capitalists, other firms, and even from the govt.
CSR initiatives encourage your employees to do new things and obtain enthusiasm for their work. By this social inclusion, employees will feel entitled to begin contributing to the wider picture. They could come up with new ideas about products or internal processes or innovate new problem-solving solutions. When you display your company’s values and sensibilities through community giving, employees will feel encouraged and assisted to advance contemporary and better ways to try and do their jobs.
Increased employee satisfaction:
The way a corporation treats its community says lots about how a corporation treats its employees. Those who feel respected and supported in their jobs are often more productive and satisfied at work. Giving your employees opportunities to volunteer, especially during working hours, creates a way of community within your organization, similarly as a connection to the encircling community. Employees will gain motivation and pride in their go through these personal-development opportunities.
Employees that are actively involved within the community also are acting as brand ambassadors. The more engaged and invested they’re in your organization, and also the greater community, the more productive they’re going to be. Companies with extremely occupied employees could gain greater business profitability.
It is the work of the regulatory authorities to scrutinize the operations of assorted companies. However, when your company starts doing CSR activities on an oversized scale, these regulatory authorities recede hostile towards your company. Besides, any company that incorporates a strong CSR generally stays within the regulations to realize the advantages.
So does the Governments and therefore the Regulatory authorities because the company gains the popularity of being trustable, a lesser number of laws and legal implications haunt it.
Helps attract and retain potential employees:
Companies that are involved in significant CSR activities are more noticeable This makes it easier for your company to draw in potential candidates who seek employment opportunities.
Also, when your company starts earning goodwill through significant CSR activities, the workers are more likely to continue with the corporate for an extended tenure.
The latest way to advertise your brand
When your company starts a CSR program, it systematically gives your company a specific level of exposure. It won’t be wrong to call such publicity as a poster. you only have to confirm your products or services are aligned with the CSR activities you’re involved in.
The ability to possess a positive impact on the community:
Keeping social accountability ahead of mind motivates businesses to act ethically and to inspect the social and environmental effects of their business. In doing so, organizations can elude or diminish the adverse effects of their business on the community. In some cases, organizations will find ways to form changes in their services or value chain that really delivers benefits for the community, where they once didn’t.
Supports public value outcomes:
Public value is about the worth that a corporation contributes to society. A sound, strong corporate social accountability structure, and organizational mindset can genuinely help organizations deliver public value results by emphasizing on how their services can make a difference within the community. This might happen indirectly, where an organization’s services enable others to contribute to the community, or directly through the organization’s own activities, like volunteerism and philanthropy.
It encourages both professional and private development:
Providing employees with the chance to be involved in a very company’s socially responsible activities can have the good thing about teaching new skills to staff, which may successively be applied within the workplace. By undertaking activities outside of their usual work responsibilities, employees have the prospect to contribute to figure and cause that they may feel dependent on or learn something entirely new which may help enrich their own perspectives. By supporting these activities, organizations encourage growth and support for workers.
This article is written by Erica Roseline Toppo, student of second-year B.A.LL.B at Fairfield Institute of Management & Technology, Guru Gobind Singh Indraprastha University.
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