Corporate Social Responsibility
This era has seen unprecedented technological advancements, industrial growth, IT and medical innovations. Along with these developments, focus has now been shifted towards social responsibility of these companies.
Companies have been put under great scrutiny as to what they contribute back towards the betterment of the society.
CSR have become a buzzword in today’s day and age. Consumers are not only concerned about the type of goods and services, they are also concerned about the type of corporate social responsibility the brand engages in.
William Clay Ford Jr. Executive
William Clay Ford Jr. Executive Chairman, Ford Motor Company says that, “Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long-term success”
Corporate Social Responsibility or CSR is simply aims to guarantee that companies conduct their businesses in an ethical way. CSR includes companies’ social, economic, environmental impact and human rights consideration.
CSR involves a range of activities such as working in partnership with local communities, donating funds to various not for profit organizations, socially responsible investment (SRI), developing relationships with employees and customers, environmental protection and sustainability.
Companies nowadays do not have a singular view of profitability rather they find a balance between commerce and their corporate social responsibility.
Employees, customers as well as Governmental bodies scrutinize the activities of the companies and that they maintain acceptable business standards.
CSR has become a source of competitive advantage for many companies as well for example GE’s Corporate Office achieved energy savings of over 57%, by replacing fluorescent bulbs with GE Lighting Lumination LED luminaire, Nestle helps 50 million children to lead healthy lifestyles because of its careful and strict Quality Assurance and Quality Control, Get Group of technologies have taken an initiative of “green office”, they are committed to provide quality solutions that meet their three core values of social, environment and economic sustainability.
Get technologies are also working on Technology for Human Development (THD) through SocioOn, that is Pakistan’s own National Social media and business network that helps in capacity building, women empowerment and socioeconomic development which has set them apart from their competitors, DHA also invests a lot in CSR activities such as DHA Environmental walk, Anti-terror walk, philanthropy etc. which has helped DHA build a name like no other society.
According to a survey of 30,000 respondents in 60 countries, conducted by Nielsen in 2015, 66% of consumers will pay more for sustainable brands and products – a significant increase from 55% in 2014 and 50% in 2013.
This clearly shows the importance of CSR for companies because people even turn against their favorite brands or companies if they think that they are not investing in or fulfilling their Corporate Social Responsibility. Aside from profits and losses, focus has also been drawn to people, planet and revenue.
According to Benjamin Franklin,
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”