Nowadays there is a significant increase in the importance of corporate social responsibility activities of corporate organizations. These activities contribute to creating and sustaining the future progress of a company. Once an expert said,” CSR activities refer to the impact that an organization creates on the society while fulfilling its requirements or performing its operations.” These activities require the companies to take into account the concerns of society and the environment along with the operations of their activities. Many Indian companies were already complying with the requirements of CSR activities. But now even the companies act, 2013 has made it mandatory for all the companies in the corporate sector to comply with these requirements. The major reason behind the establishment of CSR is that an organization uses the factors of the society to achieve its economic goals, therefore, it should also fulfill its responsibilities due toward the society. CSR activities of companies will also help them to create their brand in society. In simple words, CSR can also be explained as the responsibilities of corporate toward society. If you are willing to know about the importance of CSR in detail then you need to have a look at the points mentioned below:
- CSR will help you in creating the brand value of your company: There are many big brands that are being recognized as top brands by society. If you will study those brands then you will get to know that these brands are being recognized not because of their sales but also because of the fulfillment of their responsibilities toward society. These companies increased the value of their equity through their CSR programs. To get the appreciation of the public, providing high-quality goods is not only a factor but also a company needs to work ethically in the society. If a company will be providing high-quality products to its customers but not performing its CSR activities then it may be able to increase its sales but it won’t ever be able to create its brand. Therefore, if you are an entrepreneur, you should know your responsibility toward society and should work upon fulfilling them. Otherwise, you won’t be able to achieve the sustainable growth of your organization.
- It will help in inviting and retaining quality employees: Quality employees play an important factor in the success of their organization. Furthermore, they are also part of society. Therefore, a company considering its corporate social responsibility should also recognize its duties toward its employees. In simple words, if an employee is providing quality services to its owner then being an owner, you should also provide value to your employee by way of good packages, facilities at the office, paid leaves, pension benefits, etc. This way, you will be retaining your old value employees as well as will be attracting new quality employees. Quality employees will help you in achieving sustainable growth.
These points represent the importance of CSR activities, you should also follow latest news on CSR to remain in the corporate trend and achieve the long-term success and growth.