CII Northern Region organized Corporate Social Responsibility Summit on 20 June, 2014 at Gurgaon.
While the new Companies Bill will allow the country to have a modern legislation for growth and regulation of the corporate sector, it also expects and stipulates to companies with the market capitalization of above INR 5 billion to spend 2% of their annual net profits on corporate social responsibility (CSR), such as social work or charity.
While many of the companies are already doing there bit for the social welfare; with the new regulation in place the companies will have to structure a long term planning on CSR strategy. In the CSR sphere there also NGO’s and other consulting organization who can create value for companies, through intelligent engagement with cultural and social platforms.
These organizations develop strategies, partnerships, and platforms for companies to meaningfully impact culture and society, whilst building long-term, sustainable benefits to their business. It overall helps in building platforms from scratch at the intersection of business, culture, and society. This enables companies to get basic CSR polices in place without the need for internal CSR resource.
Here a question arises that how CSR can help companies in strengthening their business operations and increase profitability.
The benefits of CSR can be quantified and measured. Here are some of the direct benefits of how socially responsible companies experience positive effects on their financial bottom line:
? Reduced operating costs
? Enhanced brand and image reputation
? Increased sales and customer loyalty
? Increased ability to attract and retain employees
? Publicity and increased public image from good works
It is evident that CSR can assist companies to build links with public policy makers, aid innovation, involve, motivate and retain employees, build corporate reputation and enhance competitiveness. Increasingly the people see a company’s ethical profile as a determining factor as to whether they will buy its products or services or not. A strong company that engages in high profile CSR will be more appealing to a growing sector of the population in the years to come.
The reality is that no organization operates in isolation; there is interaction with employees, customers, suppliers and stakeholders. CSR is about managing these relationships to produce an overall positive impact on society, whilst making money.
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