In recent decades the concept of Corporate Social Responsibility (CSR) turns out to be a vital strategy for companies to survive in a ruthless market environment. Adopting a CSR strategy is seen to be emerging as a survival tool in a condition where the market’s shift and customers’ preferences become more unpredictable & complex. Corporate Social Responsibility is essentially a concept whereby the companies emphasize & integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. With high CSR standards, the companies testify its operational performance & demonstrate an ethical and sustainable approach of dealing with the environment & social impacts.
In India, the practice of CSR is gradually moving from institutional building to community development through various projects. Forasmuch as global influences and communities are becoming more active, CSR is turning out to be strategic and is getting linked with business. The Companies Act, 2013 has introduced the idea of CSR to the forefront that aims to promote greater transparency and disclosure. Now companies have to comply with the requirements of spending 2% of their profits on CSR projects. This move inexorably places India in league with the global countries which follow robust CSR policies. It is no more an optional “add on” to business core activities but about the way in which business is conducted & managed.
Types of Corporate Social Responsibility Events:
Environment: The business corporations as part of their CSR initiatives voluntarily alter operating procedures to combat their environmental impact. The government has also stepped in to regulate carbon emissions and apply stringent rules to waste disposal.
Fiscal: Fiscal responsibility apropos corporate social responsibility extends beyond mere profit generation. The objective is to engage the most efficient procedures to minimize wasted capital.
Human Rights: The globalization of manufacturing has placed corporations in a precarious position with regards to human rights. Socially responsible corporations often make commitments not to purchase from overseas manufacturers that employ child labour or have poor safety records.
Philanthropic Works: Corporate philanthropy attempts to leverage investments in the community. The common instances of corporate philanthropy generally adopted include supporting or fully funding educational initiatives, scholarship programs and community beautification projects. Corporate philanthropy also signals the consumers that the business views itself as part of a social fabric, that tends to improve the entity’s own support system and enhances the loyalty of its workforce.
The companies are lately realizing the fact that CSR is not just about compliance with the New Companies Act, it is rather a strategic decision. HL Agro is one of those socially responsible companies that intrinsically links CSR to the concept of sustainable development and cautiously takes account of the economic, social and environmental impact of its activities on all the stakeholders. It has actively supported corporate social responsibility (CSR) activities in its corporate governance. The entity maintains a colossal green zone area to preserve nature, strictly monitors the industrial pollutants/ emissions & enforces the advanced waste management/ water treatment facilities to regulate its overall environmental performance. Dhamma Kalyan Centre is yet another example of HL Agro’s philanthropic CSR indulgence. The charitable meditation center set up on the outskirts of Kanpur is seamlessly engaged in imparting Vipassana meditation, the most ancient “Art of Living” technique & helping thousands around the world to overcome stress, depression & violent tendencies.
CSR brings full load of benefits aside from “ego-trip” as others thought.
Globalization in the present era, force many companies including small and medium enterprises to adopt CSR in order to remain competitive locally and in the international market. Moreover, buyers would want to know that the product they buy did not come from companies and manufacturing processes that caused or even poses threat to the environment. The companies having a good track record of offering fair wages, conducive working conditions and the alike earn pleasant stories in the media. Achieving Industrial peace, legitimacy, and access to markets is yet another consequence of a good CSR strategy.
CSR programs also help in responding to an emerging concern edging the difficulty of companies in retaining highly skilled and competent personnel or luring them to work in their companies. Companies with good business practices have clear advantages in convincing investors as well.
Deemed to be in the long-term interest of the business, CSR firmly contributes in building corporate reputation & trust once executed well.