Corporate Social Responsibility (CSR) is a continuous commitment by business to behave ethically and contribute to economic development as well as improving the quality of life of the workforce and of the local community and society at large. Social responsibility becomes an integral part of the wealth creation process – which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. Over the last years an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public and the investors expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures. CSR can not only refer to the compliance of human right standards, labor and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection.
In recent years CSR has become a fundamental business practice and has gained much attention from the management of large international companies. They understand that a strong CSR program is an essential element in achieving good business practices and effective leadership. Companies have explored that their impact on the economic, social and environmental sector directly affects their relationships with investors, employees and customers. Although the prime goal of a company is to generate profits, companies can at the same time contribute to social and environmental objectives by integrating corporate social responsibility as a strategic investment into their business strategy.
A number of companies with good social and environmental records indicate that CSR activities can result in a better performance and can generate more profits and growth. In India there are an existent but small number of companies which practice CSR. The Tata and Birla group companies which have led the way in making corporate social responsibility an intrinsic part of their business plans. These companies have been deeply involved with social development initiatives in the communities surrounding their facilities. TATA’s CSR activities in Jamshedpur include the provision of full health and education expenses for all employees and management of schools and hospitals.
In spite of having such life size successful examples, CSR in India is not practiced on a large scale in India. Thus in order to be more successful and to earn huge profits companies in India should undertake CSR. In order to be a successful Corporate Social Leader one should do the following things:
- Confronting the Issues
- Believing in the possibility of change
- Taking on the responsibility of change
- Get the best people around you
- Putting up the company’s plans of CSR to action.