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Corporate Social Responsibility – A Competitive tool for Corporate Excellence. In the current global scenario, competition is now more intense than it has ever been. There is a need for corporates to pause and consider the impact of their businesses on the global community in general and their key stakeholders in particular. In a world where corporate image means everything, business houses should do everything to project a positive image and benefit from it. As a result, corporations increasingly seek to project themselves and want to be looked upon as socially responsible citizens and spend a good deal of time and resources for the promotion of social good. What exactly "social responsibility" meant varies across industries and companies but whether it is reforestation or cutting down on pollution or promoting increasing diversity in the workforce, social responsibility is the term used to capture those activities of a corporation that are beneficial to society and by implication, that makes up for some unethical or anti-social activity with which the company has been charged. To the World Business Council of Sustainable Development, “Corporate Social Responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large." CSR therefore refers to the duty of every commercial enterprise to extend care to all its stakeholders in all aspects and to account for and measure the actual and potential impact of their business on all fronts – economic, social, and environmental. However, it is now being increasingly realized in business circles that a strong CSR policy is a significant competitive advantage. When a company takes actions that exceed mere compliance with minimum legal requirements, it demonstrates that it has a strong societal interest that overshadows the need for profit maximization. CSR, therefore, is not philanthropy in its truest sense, it is more about furthering the type of corporate behaviour that helps stabilize and establish company policy. Today, there is a heightened interest in the role of business enterprises and their influence on society at large. Environmental damage, ill-treatment of workers, faulty production and customer inconvenience can damage a society’s perception of an enterprise. Criticisms are often levied at use of CSR as a proactive strategy, questioning the actual motives of a company and claiming that the entire process is an eye-wash meant to enhance the public relations value of the company. The perception of a company striving merely towards maximizing its own interests regardless of the price paid or morals abdicated is due to a system that judges and rewards performance strictly based on bottom-line returns. A change in such a mindset is required that takes a holistic approach to business processes and regards an organization as being full partners in their communities being aware of the impact of their existence rather than being merely a profit making enterprise. The debate still rages on as to whether CSR will ever be altruistic or is just business as usual with it being employed as the perfect strategic tool to enhance the company’s brand. The aim of the session on “Corporate Social Responsibility - A Competitive tool for Corporate Excellence” is to discuss these issues with a view to take the debate further. |