Supporting a social cause through Corporate social responsibility (CSR) within the framework of companies act, 2013 defines role to be played by companies in activities that benefit society and the environment. In India, CSR has gathered momentum over past decade. .
- Improved reputation and brand image: Companies that engage in CSR activities are perceived as more responsible and are often more trusted by consumers and stakeholders. This leads to improvement in brand image and reputation, leading to positive impact on company’s bottom line.
- Increased employee morale and retention: Employees are often more motivated and engaged when they work for companies that are socially responsible. This leads to increased employee morale and retention, as employees feel that they are contributing to something greater than just to the company’s profits.
- Improved relationships with stakeholders: CSR activities help companies build stronger relationships with stakeholders, including customers, suppliers, and local communities. This leads to increased loyalty and support from such groups, which can be valuable to the company.
- Enhanced risk management: Companies that engage in CSR activities may be better equipped to manage risks, such as environmental disasters or supply chain disruptions. This is because CSR activities help companies anticipate and address potential risks before they become major problems.
- Increased innovation and competitiveness: CSR can also drive innovation and competitiveness within a company. By engaging in activities that benefit society and the environment, companies may develop new products or services that address social and environmental issues.
In conclusion, CSR provides numerous benefits to corporates in India, including enhancing reputation and brand image, increased employee morale and retention, improved relationships with stakeholders, better risk management, and edge in innovation and competitiveness.
Let’s look at CSR funding and activities as expression of social gratitude