Corporate Social Responsibility and it’s
benefits
Corporate social responsibility is one the most significant global issues with
serious challenges and implications on almost all the sectors of society.
Emerging economies of the world including India, are coping with the issues
relating to poverty, hunger, malnutrition, woman rights, child labour, injustice,
farmers’ suicides and community welfare etc and in this context the corporate
sector have to develop innovative corporate social responsibility culture to
address these social ills. In the market oriented economic structure, corporate
sector is prime mover of economic growth. The business activities of an
enterprise directly affect the environment and its stakeholders, such as
customers, suppliers, employees, shareholders, and the society. It is
therefore, imperative for business to come forward and share the
responsibility for equity and sustainable development. The conventional
approach of “Single Bottom Line – earning profit” has become a concept of
past now with enactment of new Company Act 2013. There is paradigm shift
in corporate governance. Companies now have to focus on triple bottom line
representing economic profit, social and environmental dimensions. In the
economic dimension corporate has to ensure the best input-output ratios in
relation to financial bottom line. Business has to perform the economic
function within ethical and legal framework, failing to do so is indeed being
CSR- unfriendly. The second dimension deals with social good- inclusive and
equitable development in terms of employment generation, poverty reduction,
equal opportunities and other issues of social significance. And finally, the
third dimension is concerned with the impact of the decisions and actions of
corporates on the environment related issues such as pollution and emission
control, energy conservation, climate change.
benefits
Corporate social responsibility is one the most significant global issues with
serious challenges and implications on almost all the sectors of society.
Emerging economies of the world including India, are coping with the issues
relating to poverty, hunger, malnutrition, woman rights, child labour, injustice,
farmers’ suicides and community welfare etc and in this context the corporate
sector have to develop innovative corporate social responsibility culture to
address these social ills. In the market oriented economic structure, corporate
sector is prime mover of economic growth. The business activities of an
enterprise directly affect the environment and its stakeholders, such as
customers, suppliers, employees, shareholders, and the society. It is
therefore, imperative for business to come forward and share the
responsibility for equity and sustainable development. The conventional
approach of “Single Bottom Line – earning profit” has become a concept of
past now with enactment of new Company Act 2013. There is paradigm shift
in corporate governance. Companies now have to focus on triple bottom line
representing economic profit, social and environmental dimensions. In the
economic dimension corporate has to ensure the best input-output ratios in
relation to financial bottom line. Business has to perform the economic
function within ethical and legal framework, failing to do so is indeed being
CSR- unfriendly. The second dimension deals with social good- inclusive and
equitable development in terms of employment generation, poverty reduction,
equal opportunities and other issues of social significance. And finally, the
third dimension is concerned with the impact of the decisions and actions of
corporates on the environment related issues such as pollution and emission
control, energy conservation, climate change.
