“Companies not interested in sustainable development issues will not survive long.” - Malcolm Brinded
Saudi Aramco, the oil giant of Saudi Arabia that started in 1933, had the highest revenue of 247 billion U.S. dollars in 2023. It is inspiring to see companies working hard and making it to the top. But what about the social impact they are creating on society? Though the world largely focuses on profit and revenue, in the present times companies have made social responsibility and sustainable development an integral part of their business.
The United Nations defines sustainable development in the Brundtland Report as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It helps create a lasting impact, which is extremely important for businesses to follow if they want to stay in the market.
However, how can companies have a long-lasting effect? Let’s understand.
CSR: Why?
A firm that practices corporate social responsibility (CSR) has social accountability to the public, its stakeholders, and itself. This implies that rather than negatively impacting society or the environment, the company functions in a way that improves both.
How do you create an impact through business?
1. Honesty: “All that glitters is not gold” stands true for businesses and their CSR initiatives and the consumers understand this concept quite well. The public is well-informed. They do their research well to check whether the claims made by a company are reliable or not. A company’s image is doomed if it tries to create a false image. Be honest about the product quality, supply chain, and goods distribution. Make sure your CSR initiative is people-centered.
Also, consumers should be updated with the company’s sustainability reports as they give them an idea of the initiatives and their impact. It is useful for the consumers to know whether the business aligns with their values. At the same time, consumers feel valued if their opinions are also considered.
One more aspect that businesses should understand is that charity starts at home. It wouldn't serve the purpose if they treat the customers with dignity and not do the same for the people who work for them. A company needs to ensure that its workplace is discrimination and harassment-free.
CSR activities not only influence the public but also have an impact on job seekers as well. Surveys show that 72% of freshers prefer to join a workforce that is involved in CSR activities. It gives them a sense of fulfillment. Thus, increasing the rate of employee attraction and retention.
2. Environment friendly: Today’s public is going beyond to take care of the environment. When companies design a product, they can take care of the environment by opting for recyclable materials and utilizing renewable energy resources. They can also support NGOs working for environmental safety and create awareness. It helps with risk mitigation as businesses often get caught with environmental and legal compliances. Commitment to responsible business practices reduces the risk of getting trapped in legal battles and facing the public heat.
3. Profit: Making a profit and taking care of the environment can go hand in hand. Businesses can achieve this by allocating a portion of their earnings to R&D projects as well as social and environmental issues.
When brands portray themselves as socially conscious it helps in gaining a competitive advantage. It improves brand visibility.
CSR Model for Your Company
A strong corporate social responsibility plan enhances the company's market value. How can you achieve that?
Identify the needs of your business and assess how your business can coexist with the ongoing social, legal, and environmental issues. For example, when a company plans a job drive they can make sure to recruit People with Disabilities (PwD) as well.
When brands are socially responsible, they gain a loyal base of customers. Customers who are conscious about social causes align themselves with brands that match their ideology. There is an upgradation in the brand reputation.
To gain further insight, connect with your stakeholders, company owners, and CSR specialists. Be inspired by businesses that have previously established corporate social responsibility.
This drives a brand to be creative and innovative when they learn from others. It helps with product development, operational efficiency, and green practices.
Be clear on what you want to achieve through your CSR program and set a budget accordingly. For example, a company can set a target regarding the percentage of People with Disability (PwD) they will hire each year. At the end of the year, they can review if they have met the target.
Greenwashing, also known as green sheen, is a misleading marketing practice where companies present their products as sustainable or environment-friendly to consumers. Businesses use false advertising to control consumer behavior.
Great Models of CSR in India
Businesses in India have beautifully demonstrated their commitment to CSR.
The TATA Group has always shown the way to other businesses in the area of social impact. Through Tata Education Excellence Program (TEEP), they aim to partner with Government and schools and offer digital learning tools, teacher training, and infrastructure development to enhance the educational performance of disadvantaged students. The group has ventured
in healthcare as well by starting Tata Medical Center (TMC), which provides world-class cancer treatment.
In the area of rural development, by giving access to modern agricultural techniques, training, and skill development, the Tata Kisan Sansar project seeks to empower farmers.
Mahindra and Mahindra have contributed significantly in the area of girl child education through the Nanhi Kali Project. It aims to target 370,000 young girls. The KC Mahindra Education Trust has contributed more than Rs 440 million as awards, grants, and advances. 29,500 students have benefitted from this.
When a company integrates business and CSR, it’s because they realize that aren’t responsible only for themselves, but also the society. The knowledge and resources that a company has if used wisely, can be utilized for reaching out to different sections of society.
Such examples have been set by Job Booster Social India (JBSI) through their projects, namely Pragati and Birsa. Through Pragati and BIRSA, Job Booster has uplifted the turmeric farmers and the Adivasi community and encouraged them to expand their businesses. Through these initiatives, Job Booster has also been able to assist a large number of unemployed youths & underserved people. These programs are essential for creating a better society in a nation like India, where the Centre for Monitoring Indian Economy reports an unemployment rate of 7.6%. Do get in touch with us at JBI to know how we could assist you on your CSR journey.
