Corporate Social Responsibilities in Business

(CSR)

What is Corporate Social Responsibility in Business?

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially
accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also
called Corporate Citizenship, companies can be conscious of the kind of impact theyare having on all
aspects of society, including economic, social, and environmental.

To engage in CSR means that, in the ordinary course of business, a company is operating in ways that
enhance society and the environment instead of contributing negatively to them.

NOTE:
Corporate social responsibility is a business model by which companies make a concerted effort to
operate in ways that enhance rather than degrade society and the environment.

CSR helps both improve various aspects of society as well as promote a positive brand image of
companies.

Corporate responsibility programs are also a great way to raise morale in the workplace.
CSRs are often broken into four categories: environmental impacts, ethical responsibility, philanthropic
endeavors, and financial responsibilities.

Some examples of companies that strive to be leaders in CSR include Starbucks and Ben & Jerry's.

Understanding Corporate Social Responsibility

Corporate social responsibility is a broad concept that can take many forms depending on the company
and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses can benefit society
while boosting their brands.

For a company to be socially responsible, it first needs to be accountable to itself and its shareholders.
Companies that adopt CSR programs have often grown their business to the point where they can give
back to society. Thus, CSR is typically a strategy that's implemented by large corporations. After all, the
more visible and successful a corporation is, the more responsibility it has to set standards of ethical
behavior for its peers, competition, and industry.

Note:

Small and midsize businesses also create social responsibility programs, although their initiatives arerarely
as well-publicized as those of larger corporations.

Types of CSR:

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In general, there are four main types of corporate social responsibility. A company may choose to engage
in any of these separately, and lack of involvement in one area does not necessarily exclude acompany
from being socially responsible.

Environmental Responsibility

Environmental responsibility is the pillar of corporate social responsibility rooted in preserving mother nature.
Through optimal operations and support of related causes, a company can ensure it leaves naturalresources
better than before its operations. Companies often pursue environmental stewardship through:

Reducing pollution, waste, natural resource consumption, and emissions through its
manufacturing process.
Recycling goods and materials throughout its processes including promoting re-use practices
with its customers.
Offsetting negative impacts by replenishing natural resources or supporting causes that can help
neutralize the company's impact. For example, a manufacturer that deforests trees may commit to
planting the same amount or more.
Distributing goods consciously by choosing methods that have the least impact on emissions and
pollution.
Creating product lines that enhance these values. For example, a company that offers a gas
lawnmower may design an electric lawnmower.

Ethical Responsibility

Ethical responsibility is the pillar of corporate social responsibility rooted in acting in a fair, ethical
manner. Companies often set their own standards, though external forces or demands by clients mayshape
ethical goals. Instances of ethical responsibility include:

 Fair treatment across all types of customers, regardless of age, race, culture, or sexual
orientation.
 Positive treatment of all employees including favorable pay and benefits in excess of mandated
minimums. This includes fair employment consideration for all individuals regardless of personal
differences. 
 Expansion of vendor use to utilize different suppliers of different races, genders, Veteran
statuses, or economic statuses.
 Honest disclosure of operating concerns to investors in a timely and respectful manner. Though
not always mandated, a company may choose to manage its relationship with external
stakeholders beyond what is legally required.

Philanthropic Responsibility

Philanthropic responsibility is the pillar of corporate social responsibility that challenges how a company
acts and how it contributes to society. In its simplest form, philanthropic responsibility refersto how a
company spends its resources to make the world a better place. This includes:

 Whether a company donates profit to charities or causes it believes in. 

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  Whether a company only enters into transactions with suppliers or vendors that align with the
company philanthropically. 
 Whether a company supports employee philanthropic endeavors through time off or matching
contributions.
 Whether a company sponsors fundraising events or has a presence in the community for related
events.

Financial Responsibility

Financial responsibility is the pillar of corporate social responsibility that ties together the three areas above.
A company make plans to be more environmentally, ethically, and philanthropically focused; however, the
company must back these plans through financial investments of programs, donations, orproduct research.
This includes spending on:

 Research and Development for new products that encourage sustainability. 

 Recruiting different types of talent to ensure a diverse workforce.
 Initiatives that train employees on DEI, social awareness, or environmental concerns.
 Processes that might be more expensive but yield greater CSR results.
 Ensuring transparent and timely financial reporting including external audits. 

Note:

Some corporate social responsibility models replace financial responsibility with a sense of volunteerism.
Otherwise, most models still include environmental, ethical, and philanthropic as types ofCSR.

Benefits of CSR

As important as CSR is for the community, it is equally valuable for a company. CSR activities can help
forge a stronger bond between employees and corporations, boost morale, and aid both employees and
employers in feeling more connected to the world around them. Aside from the positive impacts to the
planet, here are some additional reasons businesses pursue corporate social responsibility.

Brand Recognition

According to a study published in the Journal of Consumer Psychology, consumers are more likely to act
favorably towards a company that has acted to benefit its customers as opposed to companies that have
demonstrated an ability to delivery quality products. Customers are increasingly becoming more aware of
the impacts companies can have on their community, and many now base purchasing decisionson the CSR
aspect of a business. As a company engages more in CSR, they are more likely to receive favorable brand
recognition.

Investor Relations

In a study by Boston Consulting Group, companies that are considered leaders in environmental, social,
or governance matters had an 11% valuation premium over their competitors. For companies looking to
get an edge and outperform the market, enacting CSR strategies tends to positively impact how investors
feel about an Organization and how they view the worth of the company.

Employee Engagement

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In yet another study by professionals from Texas A&M, Temple, and the University of Minnesota, it
would found that CSR-related values that align firms and employees serve as non-financial job benefits
that strengthen employee retention. Works are more likely to stick around a company that they believe
in. This in turn reduces employee turnover, disgruntled workers, and the total cost of a new employee

Risk Mitigation

Consider adverse activities such as discrimination against employee groups, disregard for natural
resources, or unethical use of company funds. This type of activity is more likely to lead to lawsuits
litigation or legal proceeds where the company may be negatively impacted financially and be captured in
headline news. By adhering to CSR practices, companies can mitigate risk by avoiding troubling situations
and complying with favorable activities.

Note:

CSR strategies may be difficult to strategically assess because not all benefits may be financially
translatable back to the company. For example, it might be very difficult to assess the positive impact to a
company's brand image that planting 1 million trees may have.

ISO 26000

In 2010, the International Organization for Standardization (ISO) released ISO 26000, a set of voluntary
standards meant to help companies implement corporate social responsibility. Unlike other ISO standards,
ISO 26000 provides guidance rather than requirements because the nature of CSR is more qualitative than
quantitative, and its standards cannot be certified.

ISO 26000 clarifies what social responsibility is and helps organizations translate CSR principles into
practical actions. The standard is aimed at all types of organizations, regardless of their activity, size, or
location. And because many key stakeholders from around the world contributed to developing ISO 26000,
this standard represents an international consensus.

Examples of CSR

1. Starbucks
Starbucks has long been known for its keen sense of corporate social responsibility and commitment
to sustainability and community welfare. According to its 2020 Global Social Impact Report, these
milestones include reaching 100% of ethically sourced coffee, creating a global network of farmers
and providing them with 100 million trees by 2025, pioneering green building throughout its stores,
contributing millions of hours of community service, and creating a groundbreaking college program
for its employees.

2. HomeDepot
As part of its annual reporting on ESG, Home Depot highlighted its achievements on focusing on
its employees, operating sustainably, and strengthening its communities. In fiscal year 2020, it
invested over $2 billion in increased salaries and benefits to enhance its employee well-being. It
also reduced energy consumption by 14% from the year prior and are on track to reduce company-
wide emissions by 40% by 2030.

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 3. General Motors
In 2021, General Motors was placed on the Bloomberg General Equality Index for a fourth
consecutive year as well as being placed in Diversity Inc.'s top 50 companies for diversity for a
sixth consecutive year. In addition, it has planned for a $35 billion investment from 2020 to 2025
in electric vehicles and aims for 100% renewable electricity at U.S. sites by 2025.

Why should a Company implement CSR Strategy

Many companies view CSR as an integral part of their brand image, believing that customers will be more
likely to do business with brands that they perceive to be more ethical. In this sense, CSR activitiescan be
an important component of corporate public relations. At the same time, some company founders are also
motivated to engage in CSR due to their convictions.

Why is CSR important

The movement toward CSR has had an impact in several domains. For example, many companies have
taken steps to improve the environmental sustainability of their operations, through measures such as
installing renewable energy sources or purchasing carbon offsets. In managing supply chains, efforts have
also been taken to eliminate reliance on unethical labor practices, such as child labor and slavery.

Although CSR programs have generally been most common among large corporations, small businesses
also participate in CSR through smaller-scale programs, such as donating to local charities and sponsoring
local events.

Benefits of CSR

CRS initiatives strive to have a positive impact on the world through direct benefits to society, nature
and the community in which a business operations. In addition, a company may experience internal
benefits through the initiatives. Knowing their company is promoting good causes, employee satisfaction
may increase and retention of staff may be strengthened. In addition, members of society may be more
likely to choose to transact with companies that are attempting to make a more consciouspositive impact
beyond the scope of its business.

Types of CSR

CSR initiatives are often broken down into four categories: environmental, philanthropic, ethical, and
economic responsibility. Environmental initiatives focus on preservation of natural resources, while
philanthropic initiatives focus on donating to worthy causes that may not relate to a business. Ethical
responsibility ensures fair and honest business operations, while economic responsibility promotes thefiscal
support of the goals above.

Environmental Responsibility

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 Environmental responsibility refers to the belief that Organizations should behave in as
environmentally friendly a way as possible. It’s one of the most common forms of corporate social
responsibility. Some companies use the term “environmental stewardship” to refer to such initiatives.

Companies that seek to embrace environmental responsibility can do so in several ways:

 Reducing harmful practices, such as decreasing pollution, greenhouse gas emissions, the use of
single-use plastics, water consumption, and general waste
 Regulating energy consumption by increasing reliance on renewables, sustainable resources,
and recycled or partially recycled materials
 Offsetting negative environmental impact; for example, by planting trees, funding research,
and donating to related causes

Ethical Responsibility
Ethical responsibility is concerned with ensuring an Organization is operating in a fair and ethical
manner. Organizations hat embrace ethical responsibility aim to practice ethical behavior through fair
treatment of all stakeholders, including leadership, investors, employees, suppliers, and customers.

Firms can embrace ethical responsibility in different ways. For example, a business might set its own,
higher minimum wage if the one mandated by the state or federal government doesn’t constitute a “living
wage.” Likewise, a business might require that products, ingredients, materials, or components be sourced
according to free trade standards. In this regard, many firms have processes to ensure they’re not purchasing
products resulting from slavery or child labor.

Philanthropic Responsibility

Philanthropic responsibility refers to a business’s aim to actively make the world and society a better place.

In addition to acting as ethically and environmentally friendly as possible, organisations driven by

philanthropic responsibility often dedicate a portion of their earnings. While many firms donate to
charities and nonprofits that align with their guiding missions, others donate to worthy causes that don’t
directly relate to their business. Others go so far as to create their own charitable trust or organisation to
give back and have a positive impact on society.

Economic Responsibility

Economic responsibility is the practice of a firm backing all of its financial decisions in its commitment
to do good in the areas listed above. The end goal is not to simply maximize profits, but make sure the
business operations positively impact the environment, people, and society.

CSR Approaches

A more common approach to CSR is corporate philanthropy. This involves monetary donations and aidgiven
to nonprofit Organizations and communities. Grants are made in areas such as housing, health,

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social welfare, arts, education, and the environment, among others, but excluding political contributions
and commercial event sponsorship. Below are the CSR approaches.

 CSR as corporate philanthropy

 CSR as risk management
 CSR as value creation

CSR as Corporate Philanthropy

Corporate philanthropy refers to the activities that companies voluntarily initiate to manage their impact
on society. Typically, corporate philanthropic activities include monetary investments, donations of
products or services, in-kind donations, employee volunteer programs and other business arrangements
which aim to support a social cause. While some companies spearhead and operate corporate
philanthropy programs themselves, others may focus on advancing the work of local community
Organization’s , nonprofit organization’s or other social initiatives geared toward improving society.

Corporate philanthropy has become increasingly popular in recent years, as consumers now expect a
certain level of accountability and transparency from corporate entities. With higher levels of open
dialogue between consumers and businesses via social media, companies have taken on more
responsibility for their particular social effects, wielding their financial and societal influence to empower
communities. It's important to note that corporate philanthropy differs from corporate social
responsibility (CSR) in that CSR is typically incorporated into a company's actual practices and functions
as a business.

Benefits of Corporate Philanthropy

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Here are a few ways corporate philanthropy can benefit a company:

1. It can help the Company give back to the Community:

The most significant benefit of engaging with corporate philanthropy is being able to give back to the
local Community. Organizations and individuals who work hard to improve society can be highly
rewarding.

2. Philanthropy Programs can improve Company’s public reputation:

Public Shareholders are likely to notice when Companies engage in Corporate Philanthropy, support
relevant social causes and invest in Communities, particularly undeserved ones. Therefore such efforts
can significantly improve a Company’s public reputation- a benefit that can lead to increase in
engagement and profit.

3. Company sales can improve:

Consumers especially younger ones have become more interested in supporting businesses with an
interest in managing their social impact. Engaging in social accountability, generosity and transparency
that can drive sales.

4. Customers may become more loyal to Company Products:

Engaging in Corporate Philanthropy may increase customer loyalty. With the market’s recent turn
towards supporting socially oriented businesses, it has become common for consumers to seek products
and services from Companies who support positive social initiatives, even if that costs more than those
created by competitors.

5. Connecting to Communities can improve Company Culture:

When Companies establish a clear social mission, connect with their communities and expand their
impacts, employees may feel more engaged in working with such Organizations. In addition this type
of engagement can lead to increased employee satisfaction, turnover and thus boosting productivity.

6. Philanthropic Companies may attract more talented candidates:

If a Company becomes recognized within an industry for its charitable efforts and positive culture, it
may attract a larger pool of talented candidates when positions open up. This is because highly qualified
candidates typically prefer to become a part of Organization with strong reputations and expressed
values

CSR as Risk Management

CSR is associated with low implied volatility and that CSR's insurance benefit is larger for firms that have
high leverage, growth opportunities, or uncertainty. However, CSR as an insurance mechanism is less
beneficial to firms that are already sound (i.e., those that have high market value and good accounting and
financial performance). The results reveal the “terms” of a CSR-as-insurance contract, confirm that CSR
creates risk-management benefits, and suggest that financial markets price this benefit in economically
significant ways.

For example, a manager would simply check how a firm's implied volatility changes as its CSR policy
changes. Or, the manager can compare a firm's and its comparable firms' implied volatilities to knowhow

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financial markets perceive the firm's CSR differently. Option implied volatilities could guide a firm to
identify proper CSR-based risk-management policies because they have the advantage of being ex ante,
real-time, and objectively observable market-pricing information in identifying the risk-management
benefit of CSR.

Corporate social responsibility (CSR) has been instrumental in creating value and growth for businesses;
however, Deloitte’s recent survey (2018) indicates that the younger generation of millennials are
expressing grave misgivings about the true intentions and motivations surrounding a company’s CSR
policy and ethical conduct. This piece offers three perspectives on CSR implementation strategies which
are useful guidelines to generate enhanced value in the changing times.

Originality/value
Businesses have to be flexible and responsive by adopting appropriate CSR strategies in order to remain
relevant and competitive. The three models in this viewpoint will help business managers to enhance
engagement, create value, and build their businesses for stakeholders and wider society. Most
importantly, these strategies will help in gaining millennials’ losing trust on businesses and streamlining
strategic direction.

CSR and country’s economic growth:

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Corporate social responsibility (CSR) has become widespread use within and beyond the corporate world. It is
a concept that depicts companies not only focused on the sole purpose of generating profit; instead, they also
have an ethical duty to give backto the society that helps them flourish (Garriga & Meie,2004; Sharma,2011).
When companies invest in CSR activities, they receive appreciation and rewards from the national and
international business communities and forums because these investments directly contribute towards
economic growth (Sharma,2011). More importantly, all the multinational firms eagerly contribute to the
welfare of their fellow citizens and other developing countries. In this context, financial institutions, especially
banks, have been working hard to build the brand image as community- based institutions, resulting in better
profitability, sustainability, and long-term success (Bihari & Pradhan,2011; Deegan,2000; Yuan et al.,2011).
Researchers have observed evidence of a positive relationship between the firm’s CSR project investments
and the performance of financial institutions, especially in the banking sector (Mansoor, 2016)).
Various sectors are contributing towards economic development by investing in CSR projects. Still, the
banking sector is the only sector that supports projects like community development, education and skill
development, environmental sustainability, healthcare, rural development projects, sports, and welfare,
especially in women empowerment which is directly contributing towards to economic growth (Ramasamy &
Ting, 2004 Mansoor, 2016 Siegel & Vitaliano,2007). Many researchersproved the link between CSR and bank
performance (Chen et al.,2018; Gond & Herrbach, 2006; Swarnpali & Le,2018; Ting,2020). The interesting
observation is that the specific link between banking sector growth and economic growth is proved by many
researchers (Margolis & Walsch,2003; Navarro Espigares & Lopez,2006 Skare & Golja,2014), so the Indian
banking sector is considered for this study. If the banks invest seriously in CSR activities, it should reflect on
their performance, so it proved that the spending on these activities impacts their performance, but are these
investments making a tangible impact on the economic indexes? The direct link between CSR and a country’s
economic growth was not measured even though regulatory bodies have made it compulsory for the companies
and banks to invest 2%of their net profits for CSR. Earlier the CSR activities performed by banks were out of
their own choice or will and the availability of funds, but now it is mandatory (Khandelwal & Swarna,2014).
Hence, the banks should invest a certain amount in CSR activities every year. The disclosure principle made
it more difficult for the banks, as they need to disclose various details like when the CSR activities happened,
where they happened, and how much they have spent on CSR activities in a year. The multiple indexes like
income index, education index, employment rate, and healthcare index are considered indirect measures for
any developing country’s economic growth (Howell et al., 2003; McGrath, 2011) The banking industry spend
CSR investments in projects related to rural development projects, education, skill development, and
accessible healthcare, which have a direct impact on the various indexes of economic growth (Perrini et
al.,2011; Wagner,2010).
The motive of regulatory agencies was clear while forming the CSR Act, 2014, to make all the profit-making
corporates give back to society in the form of CSR somepart of their profits or help the government develop
the economy (Khandelwal Swarna, 2014)

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As the funds or resources available to the government are not adequate to grow the economy rapidly to achieve
high growth rates, corporates should also contribute towards this goal of sustainable development (Maxwell et
al., 2000; Mcwilliams & Siegel, 2001).
Banking is the only industry investing a considerable amount of money in high- volume projects compared to
other sectors; besides, these CSR projects are highly correlated towards the country’s economic development
(Guiral,2012 Sharma, 2011). These CSR activities include education, community development, women and
child development, the healthcare sector, and livelihood projects, but the nation’s growth is too slow. But still,
these investments did not make a significant impact on any index that uses the measure for economic growth.
The government is struggling to provide better healthcare services to its citizens, and the literacy rate is far too
less forIndia. The unemployment rate among youth is around 23%, which depicts its miserable side (Acharya,
2006; Juscius, 2007; Macmillan et al., 2003; Netar, 2017 Szczuka, 2015). India has not placed in the top 50
nations in the HDI ranking. There is no evidence of improving the economic index even after investing
reasonably in these projects. Are these investments funded, or are only the numbers shown by the banks? This
dilemma leads our research study, and this paper investigates these arguments.
From 2014 onwards, all the listed banks and companies started contributing 2% of their net profits to the CSR,
and there are many amendments made in this Act afterward (Khandelwal & Swarna, 2014). Due to COVID-
19, regulators have announced that companies can deposit an equal amount of CSR in the Prime Minister’s
Relief Fund. It is considered to fulfil its obligations for CSR (Business Today, 2020). Since 2014, when the
CSR Act came into existence, the total amount ofCSR spent by companies stood at 10066 crores which
increased up to 13,624 crores until the end of the financial year 2017-2018, covering 28 different development
areas and all the 36 states and Union Territories of India, It is observed that the contribution of government
companies had declined gradually over the last 4 years, from 2816 crore to 2553 crore, while non-government
companies have contributed 7249 crores in 2014, which increased up to 11,070 crores in 2018. The amount
spent on CSR activities by the listed companies was around 1832 crores in 2014 and 2102 crores in 2018. But
the unlisted companies spent around 14,716 crores in 2014, increasing to 19,295 in 2018.

Companies that have contributed above 50 lakhs to 1 crore for CSR were 662 in 2014, increasing to 1072 in
2018. The deep insights into these numbers have made the researcher rethink and motivated to research
whether it is valid in all sense. The
financial institution’s reputation entirely relies on its socially responsible programs and related investments
(Poolthong & Mandhachitara, 2009), so that only banking institutions tend to have a high ranking on the
international CSR investment ranking index, which will impact the national level indexes (Perez et al., 2013).
The banking sector has made significant transformations in the last few years. It has become one of the main
proactive CSR activities worldwide.

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In the past, selling stake by HDFC bank to a Chinese bank, continuously increasing NPAs ofthe banks due to
significant loan defaulters, and RBI’s efforts to make the Indian banking sector achieve the minimum
efficiency level at least. This scenario started with the failure ofYES Bank.
The Indian banking sector has reached the current phase of struggling from a glorious degree due to a lack of
transparency and several loopholes in the system. Besides, Indian banking sector had intense competition and
started taking CSR activities very seriously (Fatma & Rahman,2014). Some banks have mentioned the amount
in the annual report is not used for CSR activities. In this decade, even though regulatory bodies made CSR
spending mandatory, banks are willing to spend the real money because it helps establish brand identity and
brand positioning among the consumers (Georgiadou & Nickerson, 2021). Indian banks are using this as one
of the marketing strategies to improve their ranking and rating voluntary because consumer recalling power
and brand loyalty is very high (Fatma & Rahman, 2014). During COVID, RBI insisted the banks transfer the
unspent amount of CSR converted into CSR corpus to the PM relief fund for national causes, so banks were
highly tuned towards spending these investments voluntarily for their brand-building exercises.
The misrepresentation of facts or authenticity of the disclosures by the banking sector got highlighted and
raised numerous questions on the considerable amount of CSR to spend by the banks while facing a massive
amount of NPA and other losses. But the economic development index is telling a different story. Bank’s
investments in the last 3-5 years shouldreflect in the indexes which are directly connected to the country’s
economic development.
But the index results depict that the economic growth is not that proportionate to the investment done by the
bank. But many companies are contributing a massive amount to
CSR, so why is the country’s economic growth still too low? Are the banks using these CSRactivities as only
brand-building exercises and marketing tools for their better brand visibility?
The Indian banking sector is a highly contributing sector towards economic growth. It tends to be responsible
towards society, as it involves a direct interest of the general public. This is one of the fundamental reasons
why banking institutions focus more on CSR activities (Perezet al., 2013). Despite the increasing interest in
CSR in this industry, no studies have measured the impact of CSR activities in the banking industry on the
country’s economic growth, especially in developing economies like India, so the present study focuses on the
Indian banking sector, and the main objective is to identify the association between CSR and economic growth.
This dilemma leads to another aspect: Is there any transparent approach that helps the banks invest insuitable
projects that support the country’s economic growth? The following research questions are framed based on
this argument.

RQ1: Whether CSR activities of the bank contribute to Indian economic growth or not?
RQ2: Are CSR activities used only as a marketing tool by the banks?
RQ3: Is there any approach for banks to make practical CSR activities that leads to better economic
development?

In the present study, the researcher has tried to link the economic growth with the CSR spending of the banks.
Later on, the discussion has been made related to the CSR Act, contradictory disclosure of the unspent amount
of CSR with the companies, and no perceptible change in the Indian economy despite an enormous CSR
spending by banks. This paper focuses on whether CSR is a myth or fact and how banks use CSR activities as
a marketing tool. Finally, this paper will suggest practical approaches for government and policymakers to
make CSR activities more impactful and long-lasting, which will impact economic growth. Researchers have
first focused on finding out the relation between CSR activities and economic development.

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Once it proved there is no significant relationship between CSR activities and economic growth,
researchers have further explained the reason using the “YES Bank” case. YES Bank is failed in the market,
being part of index ranking for CSR activities and sustainability, whereas in non-of the bankers cannot be
part of the list even though they are substantial in terms of customer base and total assets. Hence, the study
will prove both the parts of the statement “CSR as a “myth” or a “fact.”

More and more, companies in Germany and across Europe are realizing that CSR is not a luxury, but
a benefit for the business. Especially smaller, family-run companies often feel an obligation to contribute
to sustainable economic practices. Many business owners feel that it is their responsibility to give back to
and to make a positive impact on society, their staff and the environment. They see corporate responsibility
as a normative, moral obligation.
Beside ethics, there are several aspects of CSR that directly affect growth and stability of companies.
Certainly, a good reputation that goes along with CSR helps building customer loyalty and employee
dedication, as it builds confidence in responsibility and care for society and nature.

Companies that apply CSR position themselves better on the market and improve their image rapidly.

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 Sustainability as an imperative to CSR is not only concerned with preservation of natural resources,
but reduction of energy costs that positively affects the growth. Energy efficiency is therefore a
combination of responsible business and rational cost management, all complying with CSR.
There is a number of benefits that comes with integrating CSR into business practice: risk
minimization is certainly one of them. When a company's occupational safety and health management is
in good shape, costs are lower. There are fewer accident-related interruptions of production and workers
miss fewer working days.
The efforts to promote CSR and implement its management principles are vital to the
economy. More and more, companies are adopting CSR realizing its benefits and contributing to better
relations between business, society and nature.

SUMMARY:

It’s incredibly important that your company operates in a way that demonstrates social responsibility. Although
it’s not a legal requirement, it’s seen as good practice for you totake into account social and environmental
issues.

Social responsibility and ethical practices are vital to your success. 2015 Cone Communications/Ebiguity
Global CSR Study found that a staggering 91% of globalconsumers expect businesses to operate responsibly
to address social and environmental issues. Furthermore, 84% say they seek out responsible products wherever
possible.

As the above statistics show, consumers are increasingly aware of the importance of social responsibility, and
actively seek products from businesses that operate ethically.CSR demonstrates that you’re a business that
takes an interest in wider social issues, rather than just those that impact your profit margins, which will attract
customers who share the same values. Therefore, it makes good business sense to operate sustainably.

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