Corporate Social Responsibility

The Companies Act, 2013, a successor to The Companies Act, 1956, made CSR a compulsory act. Under the notification dated 27.2.2014, under Section 135 of the new act, CSR is compulsory for all companies- government or private or otherwise, provided they meet any one or more of the following fiscal criterion.

Four Types of Corporate Social Responsibility

All businesses must do more than seek strong profit margins for success; being socially responsible is part of business survival in today’s economy. Companies should take a stance on important social issues to build a brand that consumers trust and respect. As a business leader, consider these four types of corporate social responsibility and how you can implement programs that are good for the community and good for your company.

Philanthropic Efforts

The largest companies in the world are aligned with philanthropic efforts. Microsoft works closely with the Bill and Melinda Gates Foundation to bring technology to communities around the world. The company understands that its success requires not just continued innovation, but building a next generation capable of understanding, using and improving technology.

Even small companies benefit from aligning with philanthropic causes. A local car wash might offer schools a platform to host fundraisers for sports teams. Restaurants have fundraising nights when proceeds benefit a local school or charity. Supporting these causes happens to also be good marketing, because the community is invited into the business, has a good experience and sees the company in a positive light.

Environmental Conservation

Disaster relief and environmental conservation efforts are regular headliners. Companies that align themselves in these efforts help reduce their carbon footprints and aid those in need. Major corporations such as Budweiser and MassMutual took a social stance with their high-ticket, high-profile Super Bowl ads in 2017 in the wake of hurricanes, floods and other natural disasters. As a local business leader, you can assist local community efforts for food drives and emergency preparedness. Additionally, you can make it a policy to limit paper use and disposable utensils in the office. These are just a few ways companies transform into socially responsible organizations.

Company Diversity and Labor Practices

Business leaders realize that diversity in the workplace is beneficial when everyone is getting along and working as a team. However, labor policies must apply to all employees, even those at the highest levels of the company. The scandals with Harvey Weinstein and Steve Wynn show that no company is impervious to the ramifications of sexual harassment. This movement has also given rise to other diversity issues in the workplace that need attention and consistent action. As a business leader, review your own diversity policies and protocol to address any complaints and violations. This is not only good for your company image, it also helps build a positive company culture with good morale and high productivity.

Volunteering Commitments

Local communities and charities always need help. Smart business leaders know that being involved in the community in a productive way is good for the company too. Give employees the opportunity to help a local school plant trees or work with the city council on addressing homelessness in the area. Business leaders have the opportunity to choose where to spend volunteer efforts to best help the local area along with the company. The important thing for businesses is to choose a cause and contribute time.