The Corporate Social Responsibility: Not a Liability but an Investment

Abstract

The CSR (Corporate Social Responsibility) concept has not remain the moral responsibilities but has become an integral part of any business to sustain in this cut throat competition and of course, even companies enjoy several benefits like improved financial performance, lower operation costs, enhanced brand image and reputation, increased sales and customer loyalty, product safety, material recyclability and greater use of renewable resources etc… The CSR is not the innovative concept for the corporate world working in INDIA or at the world level. Today, the concept of CSR has become an inevitable concept it a business world has to develop, grow or has to survive even in this cut throat competition. During the pandemic period of Corona, the corporations of the whole world truly realized that it is the market on which we are dependent, if that market survives then and then only the corporations can find the way of their survival. Those businesses which previously were not that much serious about performance of CSR before Corona pandemic, are now that much concerned about that because now they have realized the importance of taking care of society. In India, as in the rest of the world there is a growing awareness that capital markets and corporations are, after all, created by society and must therefore serve it, not merely profit from it. If this concept has to be developed then the entrepreneurs have to change their attitude towards business of earning profit only. The main drivers of CSR have been the shrinking role of government, demands for greater disclosure, increased customer interest, grown investor pressure, competitive labor markets and supplier’s relations. Business of Business is Business' was the motto of businesspersons in early times. To economists Adam Smith and Milton Friedman, in a capitalist society profit maximization by the continued increase of efficiency is the most socially responsible way of conducting business. So, if a business has to earn to survive today the concept of CSR has become inevitable for it. Although, there are various advantages to perform the CSR and of course the scope of CSR is large too!!