CSR(Corporate Social Responsibility) is a relatively new term in the business sphere. Though coined long back, this term has gained popularity only recently. Under the new mandate of the Companies Act, every business must contribute 2% of their profits mandatorily. This contribution will be used for the betterment of society.
What is the relevance of CSR?
CSR has a positive impact on consumers. Studies show that CSR is responsible for more than 40 per cent of the company’s reputation. A firm CSR helps influence the minds of people about the company. Moreover, with advancing time, society expects more from profiting businesses. They expect them to take over social responsibilities more than they did five years ago. Research shows that more than 90% of people want more products and services to support a worthy social cause.
On the other hand, studies show that millennials choose employers based on strong CSR. More than 80% of the people would consider leaving a company if the CSR doesn’t meet the expectations. Another study found that employees are more engaged in work when a company engages in a worthy social cause.
CSR activities that help out the downtrodden are highly welcomed by society. People buying from these companies consider it beneficial to society.
Is it beneficial for the companies?
Given the conditions, CSR is beneficial for companies. CST engages more people with the company, hence making it more profitable for the company. However, the question arises whether they do it just for the profits. Or do they want to give back to society?
CSR projects demand a lot of resources and infrastructure, strategies, planning and ad agencies. Companies doing just for profit will simply launch a project rarely in a year. Those who want to give back to society will take it as a responsibility. Hence, only people-centric CSR projects can stand the test of time and bring about a change in society.