Advantages of CSR A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and

disruption of recruitment and retraining. Employees are better motivated and more productive. CSR helps ensure you comply with regulatory

requirements. Activities such as involvement with the local community

are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing

business easier. See work with the local community. Understanding the wider impact of your business can help

you develop new products and services. CSR can make you more competitive and reduces the risk

of sudden damage to your reputation (and sales). Investors recognise this and are more willing to finance you.

Disadvantages when implementing corporate social responsibility

One of the common criticisms of corporate social responsibility is that there is a conflict between the purpose of business and the concept of social responsibility. It is argued by many businesspeople and economists that the true purpose of business is to make a profit for the benefit of shareholders. Doing anything outside of this purpose undermines this fundamental business principle.

If an organisation has a responsibility to its shareholders to make as much profit as possible, how can it justify spending some of those profits on socially responsible projects or making decisions that will negatively affect the bottom line? Essentially, this argument against social responsibility remains true until consumers and shareholders begin to expect a business to act in a responsible way.

Another criticism of corporate social responsibility is that the actual benefit received by the community is negligible or non-existent. Social responsibility should result in positive outcomes for both the business and the community. However, often the results fall heavily in favour of the business involved. Businesses invest a comparatively small amount into The Challenges of Socially Responsible Business community projects and then use their efforts to promote their brand and gain access to markets all around the world. The public relations and brand building they receive far outweighs their investment in socially responsible projects.

One of the serious challenges that businesses face when becoming involved in corporate social responsibility is growing consumer cynicism. Consumers now recognise that for many organisations, social responsibility is simply a public relations campaign in disguise. They are sceptical about the true motivation behind corporate social responsibility and are not easily convinced that a business is acting in the best interests of the community and environment.

5 Companies Doing Corporate Social Responsibility Right

StarbucksDisneyNuSkinMicrosoftTOMS Shoes

For many companies, it’s not enough to make money and satisfy customers. These companies often go the extra mile to give a little something back to their employees, the community, and the world at large. They’ve developed solid reputations for going out and doing some good, turning their success into an opportunity to help others. The following companies are just a few examples of those doing Corporate Social Responsibility right.

New provisions regarding CSRWith effect from April 1, 2014, every company,

private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act. Contribution to any political party is not considered to be a CSR activity and only activities in India would be considered for computing CSR expenditure.