A business that makes nothing but money is a poor business

Henry Ford never said something more meaningful. A business has more implications on the society and environment in which it functions. Its not only the philanthropic activities which matter but activities like “Go Green” paves the way for a sustainable development and a better future for generations to come.

Understanding what an organizations Corporate Social Responsibility may be, may turn out not just an attempt for brand building in the long run, but a survival strategy, in the changing era of government intervention and policing.

CSR policies today, more than ever function as a built-in, self-regulating mechanism whereby organizations would monitor and ensure its support to law, ethical standards and even international norms or expectations. Consequently, today organizations are embracing responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere, just to ensure a humanitarian face towards the ecology within which they thrive. Furthermore, CSR-focused businesses would proactively promote the public interest  by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: people, planet, profit.

Today, CSR is not just a thing that companies may choose to do, but it is gradually turning out to be strategic inclination of major MNCs getting positioned for a better future. Today it has become a key component while evaluating a brand value and its recall value. Considering this take by the MNCs, can even the smaller and medium sized enterprises neglect whatever CSR is possible, in their disposition?

Author: Kar

Dr. Kar works in the interface of digital transformation and data science for business management domains. Professionally a professor (IIT, IIM) and an alumni of XLRI, he has extensive experience in teaching, training, consultancy and research in reputed institutes. He is a Regular Contributor of Business Fundas and a blogging addict. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.