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

social
responsibility
corporate
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

5 Companies Doing
Corporate
Social
Starbucks
Responsibility
Right
Disney
NuSkin
Microsoft
TOMS Shoes

For many companies, its 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. Theyve
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

CSR
With 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.