5 dimensions of CSR that influence the way a company does business
Corporate Social Responsibility (CSR) is an idea that requires companies and organizations to consider and work for society’s well-being and interests in general. It takes responsibility that affects its customer base, employees, shareholders, communities, and the community environment in general.
Popularly called CSR, it is a concept that has gained immense importance in the economy in today’s world. Every company today is obliged to have a CSR policy and to live up to this responsibility. It is a commitment seen as an obligation that goes beyond the legal obligation of an organization. It is a kind of responsibility that organizations voluntarily assume to improve society and its forms. There is no one-size-fits-all definition of CSR, but it is said that the broader definition of CSR is the relationship between local businesses and individuals, and society.
The growing importance of CSR
CSR is vital for any organization, or it can be said that it is beneficial for any company due to the very fundamental nature of this concept. It forces the leaders of every organization to research and propose forms and methodologies and implement measures that will bring some benefit to society.
Today’s strategy, followed by almost all large and successful companies because it determines their level of work with these moral ethics and the competitiveness of the organization, basically means that organizations must have such procedures. Policies of a company that integrates and adapt all aspects that are affected by the actions of this organization, be it social, environmental, ethical, etc., go hand in hand with the stakeholders of the company.
Organizations with a genuine commitment to CSR perform significantly better than those that do not, with an average return on investment nearly 19 times higher. In addition to various other beneficial reasons for pursuing a CSR strategy, it is also essential for a company to gain a competitive advantage over its competitors.
The reasons for such competitive advantages are:
(i) It is in the interests of the company: CSR is a strategy that offers a company a significant advantage in terms of risk management, access to capital, human resource management, cost savings, customer relationships, and a company’s ability to innovate.
(ii) It is in business interests: CSR can achieve outstanding results for a better and more stable economy as it makes a company more sustainable and more innovation-friendly.
(iii) It is in the best interests of society – It is undeniable that CSR produces the best results for a more sustainable and coherent community. On April 1, 2014, India became the first country to legalize CSR. The idea of CSR is about better business models and not just about philanthropy. By companies and includes both internal and external measures; however, this idea was only adapted externally in India.
CSR Dimensions of in India
There are several dimensions of CSR that influence the way a company does business. These dimensions also exist in India and are:
(i) Environment: The environmental aspect of CSR relates to the company’s impact on the environment in general. The goal of an organization of this dimension is to participate in business practices that do not harm the environment but rather benefit it.
(ii) Social: This CSR dimension revolves around the relationship shared by the company and society as a whole in the social dimension. The goal of CSR is to use the company in a way that benefits the community.
(iii) Economical – The economic dimension of CSR reflects the impact of CSR on the financial situation. In this dimension, CSR ensures that a company is an excellent corporate citizen and generates sufficient profits for itself.
(iv) Stakeholders: These are the most important people affected by all company actions. This includes employees, suppliers, buyers, the general public. Under this dimension, a company needs to consider how its decisions and work affect these groups of people.
(v) Voluntariness: The voluntary dimension refers to the acts undertaken by a company that is voluntarily carried out. The company is not required to take such action under any rule or law unless it wants to do this independently. In simple terms, steps that a company takes with the primary intention that it deems it proper. These actions are primarily based on the company’s internal business and ethical values that guide the company throughout its operations.
Conclusion
The unofficial bottom rule is that incorporating a CSR strategy within the company is no longer a law requirement but highly beneficial. Many companies offer assistance in helping other companies come up with a viable strategy.
GreenTek Reman envisages helping organizations and educational institutions engage in environment-friendly business practices that create value and develop a technology disposal policy. The company is all set to serve a secure future for the unexplored and ignored sector with an initiative to address all pressing concerns of the environment and therefore reforming the earth to become a safer place to dwell in.
We encourage, assist and help corporate, institutions, and individuals to get engaged in environment-friendly business practices that create value and develop a technology disposal policy. From e-waste collection and recycling to helping NGO’s in educating the poor children.
GreenTek Reman combines E-waste and client’s corporate social responsibility by giving away old working IT equipment to poor students and educational institutions for a period of time. In addition to this, we can organize different drives like plantation, e-waste collection drive, placing e-waste bin at the client site, conducting e-waste awareness drives, etc.
