27 Jan 2022 Ankit Chadha

What Is Corporate Social Responsibility and its Benefits?

Corporate Social Responsibility | TRC Consulting

CSR or corporate social responsibility is a self-regulating business operation that helps organizations become socially accountable to themselves, their stakeholders, and the public. When a company practices corporate social responsibility, it is considered conscious of its impact on all aspects of society, including economic, social, and environmental. Still not sure about what is corporate social responsibility or CSR activities? To put it in simple words, these activities are basically a way for companies to make a difference in society by investing some percentage of their profits towards the betterment of their surroundings.

A company that contributes to CSR activities in the ordinary course of business is a company functioning in ways that enhances society and the environment instead of contributing negatively. Corporate social responsibility (CSR) is a broad term used to define an organization's effort to improve society in its own way. These efforts can range from donating money to non-profits to implementing environmentally-friendly policies in the workplace or simply planting trees.

What are the Types of CSR Activities? 

Now that you know the answer to the question, what is corporate social responsibility? You must know the types of CRS activities that the companies practice nowadays. Although corporate social responsibility is a comprehensive concept that each company understands and implements differently, the primary idea of corporate social responsibility is to operate the organization in an economically, socially, and environmentally sustainable manner.

The four common types of CSR activities followed by the companies today are as follows:  

1. Environmental Responsibility

Environmental responsibility projects that come under corporate social responsibility aim to reduce pollution and greenhouse gas emissions. They put emphasis on preserving natural resources by sustainably using them. So, an organization can choose to plant trees frequently, have a no automobiles policy from time to time and many more creative policies that can help them promote sustainability.

2. Human Rights Responsibility

Human rights corporate social responsibility policies involve people-oriented policies. Such as providing fair labour practices, for example, equal pay for equal work, equal pay for all genders, zero discrimination policy and disavowing child labour, etc.

3. Philanthropic Responsibility

This type of CSR activity can include things such as funding learning programs, supporting health initiatives, donating to causes, and supporting community beautification projects.

4. Economic Responsibility

The most common type of CSR activity is this one that consists of economic responsibility initiatives. Economic corporate social responsibility aims to improve the firm's business operation while actively participating in sustainable practices – for example, using a new manufacturing process to minimize wastage.

Benefits Of CSR

After answering the question, what is corporate social responsibility and learning about the types of CSR activities next, you need to know about the several benefits of practising CSR activities, and they are:

1. Builds Trust Amongst the Public

The majority of consumers tend to spend money for a company that supports and engages in activities that work towards the improvement of society. By helping the communities either through donating money or volunteering, the organization develops trust and builds a personal relationship with its consumers.

A company that manages to build trust with its customer stays profitable in the long run. Some organizations get news coverage for their remarkable corporate social responsibility and get a significant push on their public relations side. Thus, it would be apt to say that CSR builds a good reputation for the company.

2. Sustainability

Corporate social responsibility is an essential investment. As you read above, it contributes to the long-term benefit of the business. Moreover, one way to become socially responsible is by reducing your carbon footprint and starting to utilize renewable energy.

Organizations can encourage employees to turn off devices when not in use. For instance, turning off the lights when not in use, shutting down the air conditioners after work, etc. By implementing this, the company can save a large amount of money on its utility bills plus also gets recognized as being a socially responsible company.

3. It Increases Profits

Many entrepreneurs believe that they have to sacrifice in specific ways in order to increase their company's CSR. In fact, there are many ways to maximize profits while actively participating in CSR activities. As companies work to improve their corporate social responsibility, they can leverage certain additional benefits that come with it. Benefits such as enhanced reputation that further leads to a stronger customer base, and eventually, your organization become more profitable.

4. Encourage Professional and Personal Growth

Companies with a corporate social responsibility culture incorporated into their system can easily promote volunteerism to their employees and motivate them to donate to non-profits and social causes. Employees are more prone to become individually, philanthropically minded if their company encourages that behaviour. In the meantime, employees know that their employer is working towards enhancing their local and global communities. As a result, they will themselves feel more inclined to be responsible and creative.

Corporate Social Responsibility with TRC Consulting

If you are still unsure how to execute CSR activities for your organization, partner with TRC to build comprehensive and successful business strategies to achieve all your business objectives slowly.

Our business consultants are trained and experienced enough to understand which Corporate Social Responsibility can prove to be ideal for your business, considering your assets, liabilities, and revenue rigorously.

We at TRC Corporate Consulting believe in efficiency and effectiveness to be a part of all our services. Our business consulting services help you save the time, effort, and energy invested in making a futile business decision and focusing on the most productive ones. Partner with us for all your business consulting services and leave the rest to us. For any doubt regarding our services, contact our team. We will be happy to help!

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