1.

CORPORATE SOCIAL RESPONSIBILITY:

Corporate social responsibility(CSR) is a self regulating business model which
encompasses the responsibility of company towards environment, people and society
so that sustainability of business as well as environment is ensured. CSR as cited by
United Nation Industrial Development organisation(UNIDO) involves 3Ps which are
people, planet and profit.

CSR not only helps in economic, social and environmental sustainability but also in
boosting the brand image of companies. Starbucks, Tata Industries, Infosys, and
Automobile companies such as Tesla electric and Volkswagen are some examples
which strives to be leaders in CSR domain.
The recent phenomena of climate change arising from global warming post
industrial revolution and technological advancements has cause tremendous damage to
the environment which has a serious repercussion on the livelihood of the people and
flora and fauna. The IPCC 5 th assessment report on climate change has pointed out that
rise of temperature of -1.5 degree Centigrade will be inevitable without the active
responsibility of corporate sectors towards the environment. Therefore, CSR becomes
An important tool to check the climate change.
Moreover, awareness among the people towards the environment and eco-
friendly products has seen an increasing trend in recent times (yatish josh, zillur
Rahman; sciencedirect) demands of environmentally sustainable products has increase
in recent times due to behavioral change and green consumption. For this reason CSR
has become an important part of a firms brand building process to attract new
customers and retain the existing customer.
Governments in various countries has made CSR an integral part of their
development agenda thereby enacting laws to enforce CSR. India for instance made
CSR compulsory for companies with annual revenue of more than 500 crores in
Companies Act 2013. Similarly Singapore actively promotes CSR activities among
corporates as a complementary mechanism.

Singapore Fuji Xerox Company came up with an comprehensive environmental policy in

2003 which aims to protect environment in its supply chain through eco friendly
initiatives such as “you print, we plant” initiative. The company plans one tree for each
paper made in its factory. The policy has resulted in the reduction of 40 % of CO2
reduction in its company. Apart from this was also an increase in the revenue of the
company by 38% CAGR.

Similarly Samsui Supplies and Services, a subsidiary of the Soup Restaurant Group,
donates 2,000 non-profit meals a day or 500,000 meals yearly to the underprivileged in
Singapore. Besides giving free meals, the sauce producer and distributor of food
products also employs 12 to 20 trainees from the Movement for the Intellectually
Disabled of Singapore (MINDS), who pack dry goods in its central warehouse.
Now a days to be a responsible participant in society is mandatory for companies. To
stands as a forward thinking citizen companies must follow CSR. The firm which
provides real solution of the people and the environment has higher acceptability among
people
BENEFITS OF CSR FOR COMPANIES PROFITABILITY;
1. Higher Media Appreciation: companies following CSR gains higher media attention
than other companies. Azim premjis wipro is one such example.
2. Brand Differentiation: indulging in CSR makes a brand honest durable and
trustworthy.
3. Customer retention: people also want to make contribution to make the world a better
place by supporting companies which provide a definite corporate social responsibility
plan.
4. Lower cost: Use of eco-friendly product which are locally available reduces the cost
of procurement. For instance use of fly ash in road construction by mixing it with
cements reduces the carbon footprint.
5. Employee satisfaction: Companies with CSR policy gains the trustworthiness of
employees as CSR fosters the wellbeing and progress of the employees.
BENEFIT OF CSR FOR PLANET:
1. WASTE REDUCTION: Hazardous industrial wate can be reduced with proper CSR
strategy which in turn reduces the carbon footprint in the environment.
2. 3Rs (reduce, reuse, recycle): Companies can contribute to environment by adopting
3R principle in a sustainable way. Plastic is a single largest threat to the environment
today therefore adopting 3Rs principle in plastic waste management will contribute to
the sustainable development.
3. AIR POLLUTION: Adoption of CSR in companies in sectors such as transport and
coal related industries reduces the carbon footprint in the environment.
4. ENERGY SAVING: Green technology such as renewable energies reduces the
dependent on fossil fuel thereby ensuring intergenerational.
BENEFITS OF CSR FOR PEOPLE:
1. Employee Engagement: As per studies it has been found that companies with CSR
policies has seen improved key performance indicators such as 18% increase in
productivity and 43% reduction in absenteeism.
2. Poverty Reduction: Companies has been allocating a part of their fund for poverty
alleviation programme in various countries. For instance Bill and Melinda Gates
Foundation has been spending around 35 billion dollars per annum for poverty
alleviation programme in sub Saharan African region.
3. Generating New Employment Opportunities: New employment opportunities are
being created in various sectors with newer skill requirements. Sunrise sectors such as
electric mobility, renewable energy and green technologies requires newer sets of skills
which are being fulfilled by CSR policies.
4. CSR for Local and Global Communities: CSR gives the people platform and leverage
for global and local communities to works towards a broader vision.
5. CSR For SDG: CSR is instrumental in achieving all the 17 SDGs which directly
impacts the livelihood of local and global communities.
6. Investment Opportunities: As per World Bank report the global sustainable
investment exceeds 30 trillion dollar worldwide. Therefore investing in sustainable
development ventures has potential for high returns.
Today’s business is about findings the solutions of the problems that world is
facing and the biggest problem of this era is climate change and CSR is the way to find
the solution to this problem. As it is rightly said that goodness is the only investment
which never fails, CSR ensures wellbeing of people and planet along with the
profitability of the company.