Corporate Social Responsibility refers to the management is a management model according to which business firms take care of the society and environment as their social responsibility. Society pays the price in terms of pollution and other difficulties for businesses to run smoothly. Even human society suffered from a number of new diseases because of the environmental changes coming because of industrial pollution. However, in the present era companies are using most of a business strategy to take a competitive advantage over others as well as to enhance the profit to the companies. A properly executed CSR concept can result in huge competitive advantages, such as better access to capital and markets, boosting sales and profits, operational cost reserves, enhanced productivity and quality, competent human resource, value-added and status, improved customer loyalty, enhanced decision-making, and risk management processes. CSR can be understood as a responsibility of business wherein the business not only takes care of the internal stakeholder (i.e., Shareholders, Workers) but also the external stakeholder (i.e., society, nature) as well.
The provisions of CSR applies to Every company,Its holding company, It’s a subsidiary company,Foreign company and Having in the 3 preceding financial year:
(i)Net worth > 500 crore
(ii)Turnover > 1000 crore
(iii)Net profit > 5 crore
CSR is an immense term that is used to explain the efforts of a company in order to improve society in any other way as CSR improves the public image by publicizing the efforts towards a better society and increase their chance of becoming favorable in the eyes of consumers.CSR increases media coverage as media visibility throws a positive light on the organization.CSR enhances the company’s brand value by building a socially strong relationship with customers.CSR helps companies to stand out from the competition when companies are involved in any kind of community.
It is found that there is a need for the creation of awareness about CSR amongst the general public to make CSR initiatives more effective. This awareness generation can be taken up by various stakeholders including the media to highlight the good work done by corporate houses in this area. This will bring about effective change in the approach and attitude of the public towards CSR initiatives undertaken by corporate houses.
From the times of the barter system to the present era of plastic money, mankind has stridden out long paths. There is no doubt in this that “profitability” has always been the primary force and main motivation behind all this development. This motive actually increased cutthroat competition between the business forms. Because of this competition, the companies stated exploiting the quality of the product as well as the environmental concern. Slowly and gradually the business houses realized that they have to give back to society because they are surviving because of society only. This realization gives birth to the concept of Corporate Social Responsibility. However, the companies started using this concept for brand building more than delivering it as a responsibility. The studies also revealed that the companies used corporate social responsibility for enhancing their profit as well.