Social responsibility in business, aka Corporate Social Responsibility (CSR). CSR is a self-regulating business model that aims to contribute to ethically-oriented practices.
It helps the company to be more socially responsible towards its stockholders and the public in general.
Always maintain unity and work in the process.
By practising social responsibility, companies can be conscious for the economic, social and environmental aspects of society.
According to UNIDO, which stands for United Nations Industrial Development Organization; “CSR is a management concept whereby companies integrate social and environmental concerns in their business operation and interact with their stakeholders”.
What is Social Responsibility In Business
A word responsibility holds a commitment that will balance business work as well as the area and the local community that surrounds the business. Social responsibility is therefore quite important to society, organization and human beings.
As business is a part of society; the business should strive for welfare and for a better future. Every resource is essential for a business that belongs to society. Therefore, it is necessary to think of society while setting up a business.
An annual report should be on CSR. There should focus on the overview of projects and researches over the last two to three financial years.
There should be details of the money spent on CSR during the financial years. If in case the business fails to cross the expected value, CSR should maintain a balance.
But sometimes we see that social responsibility is not fixed and has to be related to pressure at a particular point in time. If such arises, then the business and the environment will suffer a lot from crises.
Importance of social responsibility in business
Here are a few aspects that should be highlighted by every business owner. Facts that define social responsibility in business are:
Local Community
If your business is surrounded by the local community; it is the prime duty of the business owner to look after them. The local community is your business’ core target audience. You should have some customized solution for their problem.
For example, if any industry eliminates smoke or waste, there should be proper disposal.
Environment
The local community, as well as the environment, are a prime source of resources. There should be a proper balance and adequate protection over everything that surrounds your business.
There should be proper planning, the environment should not be polluted and proper measures should be taken.
General Public
The general public includes your customers as well as non-customers. There should be a category in the business policies, customers should have the right to accomplish.
Businesses should treat their customers as a God and should treat them with utter honesty. If you maintain a decent relationship ultimately there will be good marketing of your business.
Shareholders/Investors
Shareholders and investors are the ones who have invested in the business. Business can not grow on its own. It needs helping hands and those are shareholders. As a part of social responsibility, you should regularly pay them with interest.
There shouldn’t be any error in the tally. If there are proper analysis, shareholders will believe in and greatly invest in your business.
Employees/Workers
Employees are backbone of the business. They strive 24 hours for a better future for any kind of business. Every employee has a contribution to the development of business, their contribution shouldn’t be neglected. They should receive their rights as well as respect. Working in unity will empower a great boost.
Customers/Consumers
The actual worth of any business is determined by the quality of customers they have. Customers help the business to maintain their position in the market. Deal with them well and assure a quality product. There would be satisfaction among the customers and the business should focus on their needs.
Government and its administrative bodies
Government businesses are always on priority. No matter whether a business is a small scale or large scale. Every government business is well supervised and controlled. You should show faithfulness toward the government and its administrative bodies.
The business should frequently pay tax if there is an irregularity business may face loss.
These were a few aspects that need to be focused on, as these factors are strong pillars of business.
Why business should be socially responsible
A reason why a business should be socially responsible, is to promote branding and goods. Being socially responsible doesn’t just make your company look and feel good but it makes good business sense.
Policies are the main aspect of the company that helps to make a better place, the potential to boost company revenues, and increases customer satisfaction. If the business shows socially responsibility, customers will have a positive, social and environmental impact. And that’s particularly true with Millionaires.
If your company is ready to embrace social responsibility and take advantage of the opportunity surely there’s great fame in the upcoming years.
In 2010 consumers joined Unilever. The company announced its sustainable living plan and committed to having the environmental footprint of its products by 2020.
The results have been striking. It’s a sustainable living brand that grew at twice the rate as the rest of the company. And Unilever’s employee engagement and reputation have a reason since it started its sustainable living plan.
Final words
If your business has good backing, certainly it acquires prosperity. And this comes if you have CRS. As we have discussed over the need and the importance of social responsibility in business; it is important to strengthen these qualities.
If you want your business to grow more you need to inculcate these values. Customer satisfaction is the ultimate ranking of business success. Learn and implement. A business that acts irresponsibly could pay a huge price hence there is a need to be socially responsible.