Social Responsibility

Social responsibility is a common term for an ethical theory in which people are held accountable for doing their civic duty, and the action of a particular person should benefit the entire society. In some way, there should be a balance between economic growth, the well-being of society and the environment. If this equilibrium is well-maintained, then social responsibility is attained. Here you can understand the concept of social responsibility in-depth and other factors concerning the topic.

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Corporate Social Responsibility

Social responsibility is referred to as businesses, in addition to increasing shareholder value, should act in a way that boosts society. It has become progressively significant to consumers and investors who look for investments that are not merely profitable but also contribute to the well-being of society and the environment. 

Moreover, the CSR meaning is an automated business prototype that allows a company to be socially responsible to itself, the public and its stakeholders. Working in peace with the community and environment and not cheating the customers and employees, a business might not acquire anything in the short run. Still, in the long term, it means greater profits and shareholders’ value’.

Need for Corporate Social Responsibility

Self-interest: It is in the self-interest of the company to have a social responsibility as it opens new doors of opportunities, including understanding the issues and complications of society.

Stable Environment for Business: In the current cynical era, social responsibility of business should be honest that can make the markets stable.

Public Image: When a particular business initiates to solve the issues of society, it puts the company in the goodwill of the public.

Social Power: A leader is a kind of helper. Helping the society is a kind of social responsibility. Accomplishing social work assists the business to achieve social power within the society.

Management should put more effort to appear, and become socially accountable in everything they are, what they do and who they exhibit. It can help in keeping the company in high esteem with their customers, but also proactively avoids issues caused by some regulations.

Types of Social Responsibility

Usually, the social responsibility of business initiatives are categorized as follows:

  • Environmental Responsibility: This initiative aims at reducing pollution and greenhouse gas emissions and the sustainable utilization of natural resources. 

  • Human Rights Responsibility: This initiative includes offering fair labour practices such as equal pay for equal work and reasonable trade practices and denying child labour.

  • Philanthropic Responsibility: This type of CSR activities includes things like funding education programs, supporting health initiatives, donating to specific causes and supporting community beautification projects.

  • Economic Responsibility: This initiative includes enhancing the firm’s business operation while participating in sustainable practices. For instance, utilizing a new manufacturing method to reduce wastage.

Business Ethics and Social Responsibility

Most managers can become socially responsible by focusing on these four key areas.

  • Open-minded: The past is in the past, which is why you should pay attention to the present. Don’t be scared to try new things or consider various options to social responsibility as things will continually change. It is something businesses need to deal with while moving towards the future.

It also means that companies are willing to listen to new research and concerns coming from outside of the company. Even if those concerns are not meant for fundamental changes to their product or way of handling business, they still consider those. 

  • Constructive: Being and becoming socially responsible is about working with individuals who can recognize when something is socially responsible or irresponsible. The corporate social responsibility meaning is about listening and learning about the people and the environment from which it can apply. Being constructive means listening to issues, complaints, coming from both inside and outside of the company and should be willing to act on those issues.

  • Accommodating: Do anything you can to be socially responsible by integrating it into your life, your career and into your work. This way, it won’t be an additional burden to you as it would already be a part of you. By being more accommodating, you can make it challenging for critics to question your management ability or implicate you in crimes against social responsibility.

  • Proactive: Take the essential tips to make social responsibility happen and don’t wait around for others to follow through with it. Ensure that the foundation of social responsibility is in place, but always follow up to ensure that everyone is in accordance with it because even if a singer person diverges, the detraction can soon follow. Most companies acquire the best press if they are proactive and address social problems before they are forced to do so by government regulation.

Benefits of Corporate Social Responsibility

The possible benefits of cooperative social responsibility to businesses include:

  • Stronger brand image, recognition and reputation

  • A lot of positive business reputation

  • Maximized sales and customer loyalty

  • Much more operational costs savings

  • Improved financial performance

  • Considerable ability to attract talent and maintain staff

  • Increased organisational development.

  • Easier access to capital

Corporate Social Responsibility and Ethics

Corporate social responsibility is related to the overall concept of ethics. Ethics is a discipline that manages moral duties and obligations. It implies that corporate enterprises should follow business ethics and work not only to increase their profits or shareholders’ value but also to boost the interests of other stakeholders and society as a whole.

FAQs (Frequently Asked Questions)

Q1. Can a company collaborate with another company for CSR activity and project?

Ans. Yes, a company can also collaborate with various other companies for undertaking projects and programs or CSR activities in a way that the CSR committees of respective companies are in a position to report individually on these projects or programs.

Q2. What type of tax benefits can be availed under CSR?

Ans. No certain tax exemptions have been increased to CSR expenditure per se. The finance act, 2014 also makes clear that expenditure on CRS doesn’t create part of business expenditure. At the same time, no particular tax exemption has been introduced to expenditure incurred on CSR, spending on multiple activities such as contributions to the Prime Minister’s Relief Fund, skill development projects, scientific research, agricultural extension projects, etc.