Corporate social responsibility makes companies to spend 2% of its profit in social welfare work.
This increase their profit n sustanailiblity in following ways
ADVERTISEMENT-When thousands of people get benefit like in medical camp or housing project, it makes company name to known them.
TAX BENEFIT- Companies get tax benefit on amount spend on CSR.
TRUST-It increases trust in common people when social project are being taken by companies n makes its brand name strong.
STRONG INFRASTRUCTURE- When poverty eradication work, education n health facility, farming improvement, skill training etc works are taken under CSR which increases social infrastructure n as result companies get better employer n market improves.
ETHICAL VALUES-All companies earned profit from utilising natural resources so they have to written back to improve environmental conditions.
SUSTAINABILITY- CSR can promote respect for their company in the marketplace which can result in higher sales, enhance employee loyalty and attract better personnel to the firm. Increases motivation of employees n provide them volunteer work among hectic official work.
Big corporate like Bill gates, Warren baffet are today involve in social work in large scale n still they are remaining in Top among rich person of world shows that CSR improves companies profitability n sustainability.
* It fulfills their moral obligation for welfare of the society - thus enhance their image in market and help it in sustaining it's business.
* The profit generated from the Doing CSR activities has to be spent on only CSR activities and not else. This saves their income from business activities to be spent on CSR . Thus this amt can be spent on more profitable avenues. Thus increase their profitability.
* Tax exemption are given on CSR activities- thus help save their income.
CONCLUSION:Corporate has a very big responsibility to help Government in the welfare of people. CSR needs to take by corporates Suo moto so that they can atleast make a contribution to the society.
