CSR is a term where the company can take responsibility for society also. Along with its work, the company also takes social responsibility so that new changes occur in the society. Corporate social responsibility, also called corporate citizenship. The company can bring changes in the society including economic, social and environmental with CSR. Or it may be aware of the impact of all these aspects. Corporate social responsibility can help improve various aspects of society as well as promote a positive brand image for companies. The corporation adopts CSR programmes, and frequently it aims to grow its clientele to the point where it can contribute to society.
Types of Corporate Social Responsibility:-
Generally there are 4 types of Corporate Social Responsibility. If a company wants to be socially responsible, it can choose any one of them separately.
- Environmental Responsibility:- Saving or taking care of the environment has become very important in today’s time. The company gives 1 or 2% of its earnings in Corporate Social Responsibility. So that it can keep the business as well as the environment safe. Nowadays CSR has become a very important role in every company. The company thinks of reducing pollution. And the waste resources that come out of the company’s outflow, the company also uses those waste resources in different ways. If the company makes some unique product, then it also has the option of recycling so that the customer can use it again and it is not a waste.
- Ethical Responsibility:- Ethical responsibility is a pillar for the company. It conducts the business in an ethical and moral manner. In which the company should behave well with its customer. It has been seen many times that the company sells its products to its customers at the wrong rate. So this is not fair in terms of business. Companies should provide fair treatment regarding age, sex, gender.
- Donor Responsibility:- CSR challenges how a company operates and contributes to society. How the company actively spends its resources to improve the world through its donor responsibilities. Donor responsibility refers to the amount of profit a company donates to charity. Or the company may also sponsor a fundraising event within its presence community.
- Financial Responsibility:- A company might make plans to be more environmentally, ethically, focused; however, it must back these plans through financial investments of programs, donations, or product research. A company can take time to research and develop new products that encourage sustainability.
Benefits of Corporate Social Responsibility important for growth of a market.
- Brand Recognition:- The consumer is more likely to go to that company in which the consumer is treated well. The company which has worked to benefit its customers, such as selling the product using good ingredients. With these simple things, customers are attracted towards that brand or company or they suggest others to buy goods from the same company. In this way companies build the brand and grow in the market. As a company involves more in CSR, it is more likely to receive favorable brand recognition.
- Attracting and Retaining Talent :- Companies that display a commitment to CSR tend to attract and retain top talent. Employees are more likely to feel proud and motivated to work for an organization that aligns with their values and contributes to society. A talented and loyal workforce can drive innovation, productivity, and overall business growth.
- Access to New Markets:- Taking up CSR practices can open doors to new markets and opportunities. Some markets may have specific regulations or preferences favoring socially responsible companies, making CSR a key factor in entering and growing in those markets.
- Innovation and Efficiency:- CSR can drive innovation within a company, leading to the development of sustainable and environmentally friendly products and processes. Embracing sustainable practices can also lead to cost savings and operational efficiencies, positively impacting the company’s bottom line.
- Long-term Sustainability:- Companies that classify CSR are more likely to adopt sustainable business practices, which are essential for long-term growth. Focusing on sustainable growth ensures that a company can continue to operate and prosper without low resources or causing harm to the environment and society.
- Positive Government Relations:- Companies that actively participate in CSR initiatives may find it easier to build positive relationships with governments and regulators. This can lead to favorable policies, motives , or support that can contribute to the company’s growth.
Corporate Social Responsibility is essential for the growth of a market because it not only enhances a company’s reputation and brand value. But it also attracts talent, strengthens stakeholder relationships, reduces risks, promotes innovation, and promotes long-term sustainability.