The Dynamics of Corporate Social Responsibility & Role of Employees.

Friends, Thank you very much for taking out time from your very busy schedule to read my blog(s). Sharing PR knowledge with you with finesse has become my passion now and I really feel encouraged after reading your feedback in the comments column. Today I’m happy to present my 83rd blog – The Dynamics of Corporate Social Responsibility & Role of Employees.  

Corporate social responsibility is about how the organisations manage the business processes to produce an overall positive impact on society. Corporate Social Responsibility is also a continuing commitment by organisations to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. CSR is also about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and is business giving back to society.

CSR is a concept whereby the organisations decide voluntarily to contribute to a better society and a cleaner environment. CSR is a concept whereby organisations integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers.

Corporate social responsibility offers manifold benefits both internally and externally;

External benefits;

a. it creates a positive image amongst the people for its company and earns a special respect amongst its peers.

b. It creates short term employment opportunities by taking various projects like construction of parks, schools, etc.

c. Working with keeping in view the interests of local community bring a wide range of business benefits. For example, for many businesses, local customers are an important source of sales.

d. By improving the reputation, one may find it easier to recruit employees and retain them.

e. Businesses have a wider impact on the environment also. Plantation and cultivation activities are a step towards the same. Recycling used products also acts as a step towards minimizing wastes.

Internal benefits;

a. it cultivates a sense of loyalty and trust amongst the employees in the organizational ethics.

b. It improves operational efficiency of the company and is often accompanied by increases in quality and productivity.

c. It serves as a soothing diversion from the routine workplace practices and gives a feeling of satisfaction and a meaning to their lives.

d. Employees feel more motivated and thus, are more productive. 

e. It helps to ensure that the organization comply with regulatory requirements. 

Using CSR as an Image Building Exercise

The potential of using Corporate Social Responsibility for a positive image and brand building is being judiciously capitalized by the companies. Investing in CSR may not directly lead to an increase in the bottom-line, but nonetheless it can surely aid in forming a positive perception about the company among the masses. For the image building exercise, there are multiple ways at company’s disposal, but choosing the most appropriate path that is in synergy with business goal and corporate image building, becomes a subject of strategic decision.

One common approach of using CSR in corporate image building exercise is to follow inside out influence on society. This strategy focuses on creating a positive image from the primary or the core activities which the company carries out. For example, fair procurement price, safe products, truthful marketing, respectable labour practices come under this category. A committed effort is also placed on saving the environment from adverse effects of company operations. Even the end products (e.g. automobiles) are publicized in a way to highlight their role in safeguarding the environment.

Another approach of utilizing CSR as an instrument for image building is to adopt some social or environmental cause. Some companies have used CSR in a holistic way such that it has not only built an image, but also improved its business and benefitted society. AMUL and NESTLE  took initiatives to improve the condition of local dairy farmers, which in turn secured the supply of milk and improved the perception of company as being socially responsible.

Enhancing reputation through CSR activities can help in brand building and attracting more business. A positive perception about the company can help in securing the deals with new partners, investors and regulatory authorities. Additionally, it also helps in rapport building with the customers and the employees. A considerable number of customers prefer to avail services from those companies who demonstrate responsible business. Furthermore, the advantage of attracting and retaining talent also depends on the candidate’s perception of company brand, which is partially determined by the social and ethical practices of the company.

CSR, if used strategically can be utilized for a positive image building and business development. Company needs to meticulously plan out their strategy in such a way that the image building exercise does not compromise the core social and environmental responsibility, which is the crux of CSR.

Role of Employees in CSR:

‘Serving the society’ seems to be one of the newfound mantras of corporate. Being a part of people at the grass root levels, uplifting the destitute, shouldering the elderly, educating the illiterate or connecting with rural areas; these form a slew of Corporate Social Responsibility (CSR) ventures and are a necessary part of the branding exercise. The focus here is not restricted on people alone; it can be on creating awareness of the growing environmental hazards, protecting the depleting wildlife or even saving animals against ill-treatment.

Needless to mention, in an age of rising recognition and the imperative need for increasing employee engagement, CSR initiatives are not any different. The company may chart out a policy, draw up a plan, and invest funds, but it needs complete endorsement and active participation by employees to carry it forward and implement it as perceived.

The aim of CSR activities is to give back a portion to society. The means to reaching out to the needy are manifold. While some companies have readily joined the CSR bandwagon, others are still involved on an adhoc basis, showing active participant as and when the situation demands. Companies can either partner an institution or an NGO to support a specific cause or they themselves can set up a committee of employees as volunteers to oversee the operations. Some of the programs companies can volunteer for are:

•         Help during natural calamities like earthquakes, floods, etc.

•    Women empowerment and upliftment, fighting for their rights and against domestic violence

•         Services to an orphanage or an elderly home

•         Providing medical care

•         Educational support

•         Fighting against child abuse or bonded labor

•         An attempt to save environmental degradation

•         Fighting the declining wildlife 

Blood donation camps, rebuilding lives during disasters like earthquake or floods, periodically collecting books, toys, clothes or utensils for distribution, green drive initiatives like planting saplings, visiting an orphanage or an old-age home, promoting art and literature, imparting knowledge about small jobs, etc., are some of the widespread areas where a number of companies show a keen interest. CSR, in some cases, also empowers individuals by showcasing the camouflaged talent, and promoting the skill lying beneath each individual. Waste management, reduction in fuel consumption, adoption of energy efficient methodologies, green drive initiatives, are some of the emerging projects taken up by companies through its employee volunteers.

 

Thank you for reading the blog.

 

#####