Corporate Social Responsibility makes the companies more sustainable and profitable.Discuss.In this context, discuss what is Corporate Social Responsibility?
CSR is essentially a concept whereby firms integrate social and environmental concerns in their business operations and in their interaction with their voluntary and mandatory activities
CSR helps to make the companies more sustainable in the following ways:-
* CSR spent on the reduction of carbon emissions & curbing global warming is helpful for the sustainability of the environment.
* Tax benefit is given on the amount spent as CSR which helps to increase the profit of the company.
* CSR works as an advertisement for the company. When villages are adopted by the companies & developmental works like providing educational, health benefits etc are provided, the people come to know about the company which ultimately helps the company increase its customer base.
* CSR helps the employees understand the values of RESPONSIBILITY, ACCOUNTABILITY, SELFLESSNESS, COOPERATION & ENVIRONMENTAL ETHICS which help in the sustainability of the company. These ethical values are imbibed by the employees & utilized for the growth of the company.
* The significance of Socialism gets boost & the companies strive to provide the profit to different strata of the society aiming to fulfil the goal of Sustainable Development.
* Different activities like cleaning, establishing seed banks, schools, solid waste management units, electrification under CSR help to increase the standard of living of the people & their income which increases demands & leads to growth of the companies indirectly.
Corporate social responsibility
India is the first country in the world to make corporate social responsibility (CSR) mandatory, following an amendment to The Company Act, 2013 in April 2014. Businesses can invest their profits in areas such as education, poverty, gender equality, and hunger.
The legislation requires large companies to spend at least 2 percent of their profits every year on corporate social responsibility (CSR). The bill applies to companies with an average net profit of at least 50 million rupees over a period of three years.
The Companies Act has considerably widened the ambit of CSR activities which now includes:
- Poverty eradication
- Promotion of education, gender equality and women empowerment
- reducing child mortality and improving maternal health
- Combating AIDS/HIV, malaria and other diseases
- Ensuring environmental sustainability
- Employment-enhancing vocational skills and social business projects
- Relief and funds for socio-economic development such as for welfare of SC/ST, OBCs, minorities and women.
Examples in India:
The Tata Group conglomerate in India carries out various CSR projects, most of which are community improvement and poverty alleviation programs. Through self-help groups, it is engaged in women empowerment activities, income generation, rural community development, and other social welfare programs. In the field of education, the Tata Group provides scholarships and endowments for numerous institutions.
The group also engages in healthcare projects such as facilitation of child education, immunization and creation of awareness of AIDS. Other areas include economic empowerment through agriculture programs, environment protection, providing sport scholarships, and infrastructure development such as hospitals, research centers, educational institutions, sports academy, and cultural centers.
Ultratech Cement, India’s biggest cement company is involved in social work across 407 villages in the country aiming to create sustainability and self-reliance. Its CSR activities focus on healthcare and family welfare programs, education, infrastructure, environment, social welfare, and sustainable livelihood.
The company has organized medical camps, immunization programs, sanitization programs, school enrollment, plantation drives, water conservation programs, industrial training, and organic farming programs.
Mahindra & Mahindra
The company primarily focuses on education programs to assist economically and socially disadvantaged communities. CSR programs invest in scholarships and grants, livelihood training, healthcare for remote areas, water conservation, and disaster relief programs. M&M runs programs such as Nanhi Kali focusing on girl education, Mahindra Pride Schools for industrial training, and Lifeline Express for healthcare services in remote areas.