CSR as a strategic business tool for Sustainable development

Corporate Social Responsibility can be defined as making and maintaining a healthy the relationship with the society and environment by the corporate houses. Main aim of every business organization is to earn huge profits but this motive cannot help them sustaining for a longer period of time. Business alone cannot grow by avoiding the surrounding in which it is operating. Thus it becomes important for the businesses to take care of its surrounding and society.

“CSR is the responsibility of an organization for the impact of its decisions and activities on society, the environment & its own prosperity known as the TRIPLE BOTTOM LINE of people, planet and profit”.

There has been an increase in the demand for energy in developed as well as in developing nations. This is creating an increased pressure on the critical issues of environment modification which is firmly associated with the proficiency of exploitation of these power resources. Entirely business world is greatly influenced by increasing social risks. But, particularly organizations operating in the power sector are progressively encouraged to tackle these social and environmental issues like the most determining on public health and ecological balance. Organizations operating in energy sector are continuously forced to fulfil their CSR to meet the pressures of the external social and environmental concerns. Energy is undoubtedly an indispensable component for social and economic development, all over the world. Moreover energy and power source, are required to meet the ever increasing needs of the continuously growing populace and maintain its financial growth and business survival.

There have been many myths related with concepts of the two viz. “Sustainable development and corporate social responsibility” and also on the relationship between them. There is no agreement about their definition, however still there is a vague picture of whether these issues are corporate issues or government issues or belongs to both of them.

CSR drivers

The key drivers for CSR are:

  • Enlightened self-interest: Creating a synergy of ethics, a cohesive society and a sustainable global economy where markets, labour and communities are able to function well together.
  • Social investment: Contributing to physical infrastructure and social capital is increasingly seen as a necessary part of doing business.
  • Transparency and trust: Business has low ratings of trust in public perception. There is increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance in social and environmental arenas
  • Increased public expectations of business: Globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment.

The EFQM model provides a modern and intuitive approach to integrate CSR activities into the observation of business performance and the measurement of business success on a sustainable foundation. Some companies have already implemented new CSR strategies linked with EFQM evaluation. The EFQM model provides an ideal framework for the measurement of CSR activities and their influence on business performance, in the sense that the model provides guidelines regarding how much weight should be given to different enablers and results criteria within the overall performance measurement.

Measuring social responsibility can be categorized as:

  1. Community Projects: Those that the company played a significant role or provided substantial support for. These include civic and cultural programs, youth activities, student and social activities and local earth programs.
  2. Contributions: These include those made to federated drives, education program, urban/civic affairs and cultural activities.
  3. Equal employment opportunities: These should cover women and minority groups.
  4. Environmental concerns and energy conservation: This is defined as the existence of policies or procedures directed at energy conservation.
  5. Voluntarism: This measure according to the number of hour contributed by persons loaned to or a given lease time for public service work, this is to encourage individual involvement.
  6. Social Investment: These include those that would not otherwise have been made under the company’s customary lending standards or those in which social consideration played in the investment decision organizations that are focused on corporate social responsibility would proactively promote the public interest by encouraging community growth and development. By having and positive impact to the society, the organizations are also making a difference to themselves. It is not only when it comes to profits but also how the employees think and the economy.

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