World, today, is at a blink where climate change is a concern for everyone and developing socially responsible business managers is the need of today’s business world. Developing a culture of sharing and caring among employees for self, colleagues and society has been well examined and proved to increased ROI for the firms. Therefore, more and more top B-schools across the globe are focusing on inculcating these values among the management graduates.
India is the first country in the world to make corporate social responsibility mandatory, following an amendment to the Companies Act, 2013 in April 2014. Basically, any businesses can invest their profits in areas such as education, poverty, gender equality, and hunger as part of any corporate social responsibility.
Different corporates have framed different definitions for corporate social responsibility - although there is common ground between all of them. Corporate social responsibility (CSR) is about how companies manage their business processes for generating extra funds to produce an overall positive impact on society. CSR is simply the continuing commitment by organization/business to behave ethically in order to contribute to economic development. While basically improving the quality of life of the local community and society at large for better development in future.
CSR is important for companies also as it leads following benefits
Corporate social responsibility initiatives are standards and measures that businesses put in place to focus benefits of society. Generally speaking, these initiatives are based on sustainability in four different categories as following
Environmental sustainability initiatives enacted by businesses generally focus on two main areas: limiting pollution and reducing greenhouse gases. Hence businesses that take steps to reduce pollution. basically, business increase their chance of standing as good corporate citizens. While benefiting society as a whole. For example, Cisco Systems, a multinational technology company, that has taken a various step to reduce its carbon footprint, including the installation of photovoltaic systems at production facilities and developing platforms. which allow employees to work from remote locations rather than traveling to the office.
Philanthropic initiatives include the donation of time, money or resources to charities and organizations at local, national or international levels. These donations can be directed to a variety of worthy causes including human rights, national disaster relief, clean water and education programs in underdeveloped countries. For example, Microsoft co-founder Bill Gates has donated billions of dollars to the Bill and Melinda Gates Foundation.
The primary focus on ethical practice is to provide fair labor for businesses’ employees as well as the employees of their suppliers. Fair business practices for employees include equal pay for equal work and primary living wage compensation initiatives. Basically, ethical labor practices for suppliers include the use of products that have been certified as meeting fair trade standards. For example, TATA Steel, Ben and Jerry’s Ice Cream uses only fair trade-certified ingredients like sugar, cocoa, vanilla, coffee and bananas.
Economic responsibility focuses only on basic practices that ensure the long-term growth of the business, for an example of economic responsibility is when a company modifies its manufacturing processes to include recycled products like plastic, paper that could benefit any company by simply lowering the cost of materials and also benefit society by consuming fewer resources.
We, at Vidyalankar School of Business, believe in inculcating social and moral values among students, for self and society. On the occasion of Deepawali, the students organized a donation drive at signal school, Thane. Students collected and donated basic need products like toothbrush, toothpaste, soap, some Diwali sweets etc. to the poor kids of the school. Also, students spend time with them decorating their school by making kandil, diya, some decoration craft and donation box. It was a great experience for the students and in return they had learnt the lesson of being responsible citizen of the country.