What is Corporate Social Responsibility And Why Is It Important?
What is Corporate Social Responsibility And Why Is It Important?
  10 Mar'2022

In the 21st century, having a sustainable business is very important to every company. Be it an automotive giant or a marketing start-up, being a responsible entity and doing its part for society is imperative. Here CSR comes into the picture that many may not be aware of. Learning about corporate social responsibility, also known as CSR, is essential before going about it. In recent times, CSR activities in India have gained popularity. However, the key is to learn more about this subject and then move forward. 

 

Getting involved with the community around you is a duty that every organisation needs to understand properly. Once you have all the information with you, it would be wise to look for the top CSR organizations in India that can make this process easier for you.

 

Mentioned below are answers to some of the most common questions about corporate social responsibility: 

 

What is Corporate Social Responsibility? 

 

Corporate social responsibility is a type of business model followed by most up-and-coming brands. It helps them self-regulate their social accountability. Along with this, CSR activities in India help in creating sustainable practices that increase awareness about various social causes. Your company can reap the benefits of social responsibility by working towards a cause that can be easily aligned with your brand values. From helping young children get an education to empowering women in becoming independent financially, the advantages of corporate social responsibility for societal growth are abundant. There are a number of non-profit organisations that collaborate with corporates in order to provide financial, psychological, and social support to various underprivileged communities. 

 

Why is CSR Important? 

 

The most important reason for taking up CSR activities in India is that it helps in making any company ensure ethical practices within its internal operations, as well as, external communication. The need for social accountability and responsibility go hand in hand because it ensures that a business can sustain itself without any form of malpractice. Moreover, organizations in India that are involved in CSR have a higher chance of becoming successful in the market than those that do not participate at all. In this day and age, bringing about a positive change in the society we live in can help future generations immensely. Hence, companies are encouraged to make CSR an integral part of their business goals. 

 

What are the Advantages of CSR in India?

 

One of the most frequently asked questions is related to the advantages of corporate social responsibility. The answer to it is multi-fold mainly because CSR is valuable for not only the company that is involved but also for the world we live in. Here are a few key benefits of social responsibility

 

  1. Creates a Brand Image - A company that promotes sustainability is bound to make a mark in the market. This is simply because its brand values will be well-aligned with the majority of corporates across the world. Organisations that pay attention to their social responsibility create a positive brand image in the market. 

 

  1. Empowers the Needy - One of the key advantages of corporate social responsibility is that it improves the lives of people who need it the most. The whole reason behind raising awareness and funds by a company is to ensure that underprivileged people are able to improve their circumstances in the best way possible. 

 

  1. Provides Tax Exemptions - In India, organizations that have CSR activities such as charitable donations, fundraising events., dedicated to charitable trust get tax exemption. This is mentioned under Section 80G of the Income Tax Act. Owing to this, your company will be able to save a lot of capital at the end of each financial year with certain CSR activities. 

 

  1. Attracts Prospective Clientele - Nowadays, people are interested in buying products or services that have been developed by socially aware companies. This is because a lot of citizens in our country are understanding the importance of sustainability. If your brand engages in CSR activities, then the chances of attracting more customers are very high. 

 

  1. Builds Trust with Investors - Since CSR has become an essential part of business practices in the country, investors are paying attention to it too. If your brand is involved in significant CSR campaigns, then you will get a lot of investors interested in the products or services that your company has to offer. This will provide you with a long-term association with socially-aware investors and make your brand achieve greater heights. 

 

  1. Inspires Your Employees - Regular engagements of employees in CSR activities is a good way to inspire the employees. Giving is always better than receiving and making efforts to bring change in society gives a sense of joy and completeness. It can be a great way to keep the people working in an organisation motivated. It is because of this reason that a lot of MNCs set up CSR departments that ensure regular awareness campaigns within the office.

 

By taking these points into consideration, it is imperative that your brand focuses on its social responsibility to make this world a better place.

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