Benefits of CSR to Society and Companies in India
- November 11, 2019
- Posted by: Avinash Chandra
- Category: Corporate Social Responsibility
If the CSR concept is implemented properly then it has the ability to bring different competitive advantages like improved access to capital and markets, an increase in sales and profits, savings in operational cost, enhanced productivity & quality, efficient human resource, improve decision making and risk management processes.
When it comes to best CSR services, you can buy from a company that well-reputed in this field.
What are the Benefits of CSR Activities
Corporate Social Responsibility has turned out to be a hot topic these days. It is a broad term to describe how a company is operating in order to enhance its community.
The demonstration of CSR is done in lots of different ways by companies such as donations, implementing environmentally safe processes, employee volunteering and many more.
These efforts whether being large or small tell a lot about your organization. Therefore, companies who are invariably exhibiting their commitment to CSR initiatives are showing their capability to assist their community.
As per the report, it was revealed that 55% of consumers are inclined to pay more for products from socially responsible companies. This clearly means that corporate social responsibility is as superior for your company as it is for your brand.
Benefits of CSR in India
Below stated are some of the advantages of CSR:
1 Improved employee satisfaction:
Benefits of CSR to organization
Remember that the way a company serves its community tells how it is going to treat its employees.
People who feel that they are respected and supported in their jobs are likely to more productive as well as satisfied at work.
When a company gives its employees opportunities to volunteer during the working hours then it helps in creating a sense of community with the organization.
Trough these personal-development opportunities, employees often gain motivation and pride in their work.
It was seen that companies with highly engaged employees had 21% better business profitability.
2 Ability to have a positive impact in the community
When the social responsibility is kept in front of mind then it helps to encourage businesses to act ethically as well as consider the social and environmental impacts of the business.
When this is done, an organization often starts to avoid the inimical impacts of its business on the community.
Many organizations will start finding ways to change their service or value chain which delivers the benefit for the community.
Therefore, CSR has a positive impact in the community.
3 Enhanced public image: Benefits of CSR to Business
In this digital era, companies that are demonstrating corporate social responsibility are obtaining exposure as well as praise for their involvement.
Remember that your brand’s name will only benefit when you do good actions in your community.
Consumers often feel good and proud when they buy products as well as services from the companies that are contributing to the betterment of their community.
So, don’t miss the chance to publicize your CSR initiatives as well as spread the word about your community involvement.
This can be done by tweeting, posting or sharing your social programs. Your brand’s public image will increase when you let the public know about your good deeds.
4 Supports being an employer of choice
Being an employer of choice mainly translates into the company’s capability to entice and hold on to high calibre staff.
There are mainly two ways to approach being an employer of choice; first is by providing a work-life balance and second is the positive working condition as well as wok place flexibility.
According to one of the researches, it was revealed that a robust corporate social responsibility framework will assist a company to turn more attractive to potential future employees who are in search of workplaces with socially responsible practices, sound ethics and also community-mindedness. The above stated are the advantages of corporate social initiatives to organisations.
How CSR benefits the society?
Corporate social responsibility not only offers a wide range of benefits to a company but also contributes to the wellbeing and betterment of society. Rendering benefits to the whole of society should be the important driver for the business to start as well as continue CSR involvement.
Generally, most researchers focus on the advantage of social responsibility to enterprises and what is the need of implementing it, there are only a few that mention the gains of society.
The involvement of corporations in the local community’s problems helps to create a better ambience in its surroundings.
Those who have been helped by the company’s activity are happier and also benefit from a higher standard of living.
Seeing that corporations care for communities’ betterment helps in making everyone feel safer and also notably decreases corruption within society.
With a better quality of products not only the companies will benefit but also society.
When the CSR rules are obeyed by the corporation’s then it helps in eliminating all the defects at the production stage itself, thus diminishing the number of complaints as well as enlarging customer satisfaction.
Therefore, the CSR changes in a company can lead to a cost reduction from which the customers will be benefitted, if it results in price fall.
The responsible behaviour of the company is surely going to inspire the people in their surroundings in order to do the same.
CSR is about an organization that takes responsibility for the impacts of its decisions as well as activities on all aspects of society like community and environment.
Therefore, corporate social responsibility is not only about donating money or printing double-sided to save trees but about contributing to health as well as the welfare of society. In this way, CSR activities improve society.
Benefits of CSR to Companies in India
There are many rounds due to which companies often take CSR seriously. Though CSR is not luxury but it often benefits a company’s business to a great extent.
Regardless of the size or sector, CSR has many benefits that can be applied to any business. Some of the major benefits of CSR to companies are:
- Enhanced brand recognition
- Positive business image
- Improved sales and customer loyalty
- Savings of operational costs
- Enhanced financial performance
- Excellent ability to attract talent and retain the staff
- Effortless access to capital
The corporate social responsibility ensures that a company is actively taking the steps to invest in the greater good of a community by performing something which depicts a level of care.
The benefits of CSR are countless. Today, almost 93% of the world’s largest companies are publishing their CSR reports.
In the year 2005, there are just 64% of big companies that were publishing CSR reports.
As per the research, it was revealed that companies who genuinely invest in corporate social responsibility, the positive outcome of it benefits the consumers, employees as well as the company’s bottom line.
When your business pursues the strategy of CSR then it can easily generate a positive public image. When companies meaningfully engage in CSR can generate improved media coverage.
As consumers are now increasingly concerned about the ethics of goods and services they purchase, positive publicity is even more dominant.
A strong CSR program helps in influencing more investors as well as partners towards your company by showing that your business is much more than just the bottom line.
When you invest in CSR, it shows the investors that your company is healthy and looking towards the coming times.
One of the research showed that companies that opt for green programs often perform better when compared to those who do not pursue it.
How the organization is benefitted from CSR?
As CSR adoption is becoming increasingly famous all around the world, it is safe to assume that organizations have great prospects in this area. Here are some benefits of CSR to organization:
Enhances the reputation of company
CSR activities are known for depicting positively on the image of a company. The goodwill of your organization is increased after the implementation of CSR policies in the organization. Due to the clean image of your company, consumers will be willing to buy your products and services.
Assists to attract and retain potential employees
When the organization is indulged in serious CSR activities then it is more recognizable. As a result, it makes it easy for you to attract potential candidates who seek employment opportunities.
Therefore, when the organization starts earning goodwill with the help of significant CSR activities, the employees decide to continue with the company for a long time.
Attracts the new investors
Remember that the reputation of your organization in the market is going to decide whether you will receive new investments or not. The image of a company can be boosted, with CSR programs. Therefore, the moment organization starts grabbing enough eyeballs, it also attracts a number of investors.
A great way to advertise your brand
It is believed that any publicity is good publicity. When your organization starts a CSR program, it will automatically give your organization a particular level of publicity. And this won’t be wrong to call such type of publicity as an advertisement. Just assure that all your products and services are aligned with the CSR activities you are indulged in.
What is CSR long term benefits?
The concept of corporate social responsibility has become so prevalent that it has received its own acronym in business circles.
CSR mainly means that a corporation needs to be accountable to a community as well as to shareholders for its actions and functioning.
The moment any corporation acquires a CSR policy, it has the motive to signify a goal of upholding ethical values and respecting people, communities as well as the environment.
The implementation of CSR policy helps in enhancing the company’s profitability as well as value for long term.
As per the report, it was stated that there was a clear financial benefit to investing along with CSR principles.
With the help of CSR, companies can increase their accountability as well as their transparency with investment analysts, shareholders and local communities.
As a result, it helps in improving the image of the company among investors, giving long term benefits.
What are the drawbacks of CSR?
Woefully, CSR programs also have some drawbacks and by knowing them you can save your business in the long run.
It costs money to implement
One of the major drawbacks of CSR is that its costs fall unequally on small businesses. Only the major corporations are able to afford to allocate a budget to CSR reporting. It is not always open for small businesses that have only 10 to 200 employees.
Shift in the profit-making objective
Many economists have censure CSR saying that it shifts the company’s focal point of the profit-making objective. Profit-making is the utmost priority for any financial entity.
When your company or organization gets indulged in CSR activities, you need to immediately cut on the profit margin, resulting in making your shareholders unhappy.
Hampers the stature of the company
In case if the companies are found to violate the CSR program then CSR policies make it mandatory for the companies to reveal the shortcomings of their own products. As a result, your existing customers are going to lose faith in your company, if they find out the flaws of your products. Thus, it reflects negatively on your sales figures also.
Customers can get annoyed
In the beginning, everyone is going to appreciate you for adopting a CSR program for the company. But if the program is not rendering instant results, people start thinking negative that it is nothing but a PR stunt. Therefore, it will be not good for your company’s image.
An unexpected increase in the cost of production
Getting indulged in the CSR activities can result in increasing the expenditure of your company. Remember that it is going to cost you a significant amount of capital when you are giving back to society. When you will try to increase the price of products to make up expenses, customers will bear the burn.
Therefore, CSR helps in business practice by forging a string between corporation and employee.