CSR is a recent model of business that makes a company responsible and socially accountable to its shareholders, stakeholders, itself, and the public. The purpose of this business model is to return something to the community. This can include philanthropic causes, and provide positive social value. Many of the businesses are turning to this model as it helps them to build a positive image among the crowd and also boosts the goodwill of the company. This also does reflect on their turnover. The companies following CSR chalk out plans where they decide the output and the execution of the company.
If you are going to follow the CSR model, then you should be well aware that the CSR initiatives should follow your business strategy. The alignment with the business’s core foundations and processes enables absolute success. This however does require some thinking before you do it. All the factors have to be put on the table before you go into it.
This is not an individual task but requires support from top-level management. If it has to transform into reality, then the top of the company can’t afford to be divided. Whatever the differences are, senior leaders, including the CEO, senior legal counsel, and c-suite executives are some positions that need to be agreed before the initiative can move forward.
Collaboration is very important in this matter. The different partners bring in new knowledge gained from their initiatives. This helps in assisting the other partner in learning the capabilities and understanding the paradigms of the market. The experience in different fields can help a lot in this matter and in cases of CSR where outreach is everything, this comes in handy.
A business has to deal with the community and CSR puts a huge emphasis on the relationship that the company has with the public. Philanthropy includes donations of time, money, or resources to charities. This can be local, national, or international. This is not a donation in a real sense, but an investment as it will build up the brand in the eyes of the public. These donations can be directed to Human rights, Disaster relief, education, or clean water in underdeveloped countries.
The reputation matters a lot for the business. It has to indulge in ethical business practices like equal pay, fair labor practices, and living wage compensation. Use of fair trade products in the business. There should be a long term plan for the economical sustainability of the business as well as its impact on society. The practices should be fair that doesn’t harm society and also conserve the resources.
Goodwill is everything in the market. CSR is one such model that helps business not just to give something back to the community but at the same time, make a unique name among the crowd. They can indulge in practices like limiting pollution and reducing greenhouse gasses. The ethical practices create a positive image of the company and at the same time promote the safe ways of business.