Corporate Social Responsibility is an initiative by a company or corporation, under which the company or corporation takes action in the interest of the society and the environment. In fact, understanding the company's responsibility for society and environment by a company or corporation and taking steps for their interest is 'Corporate Social Responsibility'.
- The concept of 'Corporate Social Responsibility' is based on the concept of Give and Take. Since corporate sector acquires raw materials and human resources from society, it is their responsibility that they provide something in return for society. The Company Act was passed by the Government of India in the year 2013, in which provision was made that each company whose net worth is 500 crores or more, whose turnover is 1000 crores or more or whose net profit is 5 crores or more, In the interest of the society and the environment, 2 percent of the total profit of its last three years will be spent.
- 'Corporate Social Responsibility' is beneficial for the society, and it is also beneficial for companies and corporations itself.
How is 'Corporate Social Responsibility' useful for society?
- Under 'Corporate Social Responsibility' companies and corporations spend a certain portion of their profits in the welfare of the society and in the protection of the environment, which benefits the society in a number of ways.
- For example, schools and hospitals are being constructed by companies and corporations under 'CSR'. Apart from this, drinking water, sanitation and toilets are arranged so that society is widely benefited.
- Some companies have also been playing an important role in the plantation work and some are allocating solar power equipment and spreading illumination in the homes of the poor. These steps help to preserve the environment.
- Most of the efforts are being made by companies and corporations under 'CSR', skill development and women's empowerment (by providing employment opportunities).
How do companies benefit from 'Corporate Social Responsibility'?
- The benefits of 'corporate social responsibility' are also received by the companies themselves because the money spent by them in social interest increases belief in the minds of the people towards the company.
- Increasing the trust of the people towards the company is the product of the company or the services provided by it are popular. This increases the profitability of the company.
- Most of the company's credibility increases, so that the company gets the support of the government and it also makes it easier for the company to attract investment.
Conclusion:
In conclusion, it can be said that 'Corporate Social Responsibility' benefits society and environment as well, and it also benefits the company. Most of the company gets more stability.
