Significance of Corporate Social Responsibility

There has been growing importance of Corporate Social Responsibility (CSR) phenomenon in the contemporary business and community across the world. It has been becoming a matter of great significance for business firms to rely on CSR initiatives to secure increasing support from community groups and stakeholders community leading to their business growth and success. International businesses have shown great enthusiasm towards a robust CSR performance in host and developing countries so to clinch stronger local and global community support for their business affairs. 

Under CSR initiatives, business firms come up with effective targets and performance in serving their clientele, shareholders, employees, suppliers, community groups and environment. They evolve socially responsible and environmentally sustainable strategies to conduct their business affairs and proactively engage into community-based partnerships to ensure socio-economic growth and development of general public.   They also engage into business relations with those parties who hold impressive CSR credentials. Their CSR-based mind-set and behaviors significantly help them to meet their financial targets with lowest possible operational costs and stronger community supports. 

There has been growing trend among businesses to publish CSR reports worldwide reflecting their dedication to social good and environmental concern alongside meeting financial targets. There has been growing understanding and scrutiny by society groups over the CSR initiatives and performance of business firms in seeking public welfare. Consequently, business firms have shown more willingness and compliance to integrate greater societal and environmental facets in their CSR exposures. They have adopted international standards to give a fair and true account of their CSR targets and achievements. They largely count on community’s feedback and expectations to evolve their CSR strategies. They provide full account of their financial and societal operations for the appraisal of their performance in utilizing community financial and human resources in seeking general public welfare. They provide regular CSR reports and exposures developed under globally recognized criteria for public information and accountability. Strategic Corporate Philanthropy can be attained by meeting the marketing and other corporate objectives of businesses by investing in CSR activities. They do so by voluntarily allocating resources to social services and charitable cause as a discretionary responsibility. 

Keywords: Corporate Social Responsibility, CSR, Corporate Philanthropy