In recent times, corporate social responsibility has gained lot of importance among companies because of its long-term benefits. Companies should be responsible to the society for their activities and owe to the environment in which they operate. Consequently, environmental protection, transparency among stakeholders, education, health, employee welfare activities and compliance with the legal requirements has gained importance for corporates worldwide. However, mere contribution to community building doesn't make a company socially responsible. A company should take a balanced view of the components of corporate social responsibility and implement the strategies in coherent with the vision, mission and values of the company.
In
today's globalized economy corporates play a major role
in shaping the quality of life of the society as a
whole. According to Nobel Laureate Amartya Sen,
"Market forces alone are not sufficient for
equitable distribution, and some sort of intervention is
required, be it political or from business houses,
towards society." In recent times corporate social
responsibility has assumed lot of importance not only
among the corporates but also among the policy- makers.
It is but natural that corporates are responsible to the
society for their activities and owe to the environment
in which they operate.
The
European Union defines Corporate Social Responsibility
(CSR) as "a concept that an enterprise is
accountable for its impact on all relevant stakeholders.
It is the continuing commitment by business to behave
fairly and responsibly and contribute to economic
development while improving the quality of life of the
work force and their families as well as the local
community and society at large." In broad, CSR
means a collection of policies, programs and practices
adopted, followed and recognized by a company that is
based on certain values including respect for people,
communities (in which the company operates) and the
environment. |
