What is corporate social responsibility


Corporates' social responsibility is a matter intrinsically ingrained in the constitution of India which envisages an economic development that does not result in the concentration of wealth and means of production to the common detriment and that material resources of the community are so disturbed as best to sub serve the common good. Social responsibility of business refers to what business does over and above the statutory requirement for the benefit of the society. The word responsibility emphasizes that the business has some moral obligations towards the society. The term corporate citizenship is also commonly used to refer to the moral obligations of the business towards the society. It implies that like individuals, corporate are also the part of the society and their behaviour shall be guided by the social norms.

The concept of CSR originated in the 1950s in the USA and the concept came into prominence in public debate during the 1960's and 1970's. At that time US had lots of pressing social problems like poverty, unemployment, race, urban blight and pollution. Corporate Social Responsibility became a matter of utmost importance for diverse groups demanding change in the business. There are various strategic approaches to CSR. Some emphasis risk management for instance through reputation management. Others advocate a more proactive approach to CSR, where finding solutions to social problems becomes part of the company's business strategy, thereby providing access to important markets. Quite apart from the company's contribution to society through job creation, taxation and generating economic spillover effects, the company can develop products, services, production methods and business practices that promote development.

Examples of this include micro credit, mobile telecommunications, solar power and water supply. The substance and understanding the concept of CSR are dynamic. The focal issues vary according to the area of activity in question, and change over time. Philanthropy, or donating to good causes, has traditionally been perceived as an expression of a company's commitment to corporate social responsibility. Many companies continue to view CSR in terms of charity and support to the local community. However, there is a growing tendency to see the core area for practicing social responsibility as the company's own operations. Corporate social responsibility offers manifold benefits both internally and externally to the companies involved in various projects.

1. What is Corporate Social Responsibility (CSR)? What are the various strategic approaches to CSR?

2. What are the benefits of CSR? What is your opinion about the current amendments made regarding CSR initiatives in the Companies Bill?


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Microeconomics: What is corporate social responsibility
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