Question: Corporate social responsibility makes companies more profitable and sustainable. Analyse.
Answer: Corporate social responsibility places an obligation for a company towards society and environment through monetary contribution. This aims to ensure that companies give back to the society as much as they take from it.
How corporate social responsibility makes company profitable and sustainable?
- Improving working surroundings
Working surroundings play an important role in deciding the profitability of the company by creating a more suitable environment where employees can work in an efficient way. Efficient working by employees will enhance the profits of the company much more.
Ex: Planting trees nearby the company office makes the surrounding more enhanced for employees to work.
- Reduces economic burden
Social responsibility is not only money giver but it also works as money saver on the long run. By taking those measures that are beneficial to society and employees, the company can contribute towards sustainable development.
Ex: Using solar energy will reduce carbon footprint and also reduce costs on the long run. Use of water recycling technology also is beneficial for society.
- Social and governmental cooperation
Companies that participate in social responsibility will receive cooperation from government and society in its operations. The cooperation of society is very important for a company to exist and develop. The government support will help in boosting growth.
Ex: The Infosys foundation working towards providing education for underprivileged and helping in water conservation in rural areas.
Thus, corporate social responsibility is a complementary system where companies provide assistance to society for their cooperation in smooth running of the firm. This system will reduce any future clashes between the groups.