Corporate Social Responsibility
Corporate social responsibility refers to the various responsibilities in the process of making an organization a responsible corporate citizen of the society. Within the business world, the main “responsibility” for corporations has historically been to make money and increase shareholder value. Gradually, in the last decade, the movement and support for the environment, for local communities, for better working conditions, and for ethical practices has gathered momentum and taken hold.
These days, businesses have started measuring the performance and that is calculated on the basis of the tangible and intangible value additions which not only include the financial performance but also other non- financial performances. Proper reporting is done also known as sustainability reporting, helps the organizations in the process of brand building, internal and external communication. The reporting benefits in maximum utilization of available resources, stakeholders satisfaction and sustainable development in real terms.
The different factors in measuring corporate social responsibility (CSR) practices include transparent trade practices and transactions based on ethical values, following the legal compliances, respecting the communities, people and environment. Beyond making profit, companies are responsible for their negative impacts on the stakeholders and the planet. Different stakeholders are their employees, customers, business partners, investors, suppliers and the community. In order to satisfy the expectation of all the stakeholders, the companies should be more environmentally and socially responsible business operations.
It is also described as “triple bottom line” approach for the impact measurement, which includes the corporation’s financial, social, and environmental performance in conducting its business.
Thus it (CSR) is not about charity, but it belongs to the core business of a company and therefore should be an integral part of doing business. Companies are under increasing pressure from multilateral societies and governments are taking strict measures for corporate to take socially responsible conducts and actions.