Corporate Social Responsibility: A Key Coponent in Company's Growth

Abstract

Corporate social responsibility is also known as corporate citizenship, corporate philanthropy, corporate giving, corporate community involvement, community relations, community affairs, community development, corporate responsibility, global citizenship etc. Corporate social responsibility has captured centre stage in the 21st century. Antagonists have asserted that the business should focus on their core activities, that is, earning profits, on the contrary, protagonists are of the view that it is the responsibility of the firm to maintain an equitable and working balance among the claims of the various directly interested groups, such as, shareholders, employees, customers and the society. It is now a widely accepted fact that corporate governance and its CSR element has walked away from the profit centric model to the socially responsible model, a concept referring to the way in which companies exercise responsibility and accountability for the economic, social and environmental impact of their business decisions and behaviours. As most of the business organizations have expanded their wings, either by foraying into new markets to sell their products and services or by working with new overseas suppliers, which has resulted in the upward movement of compliance costs. Failure on the part of organizations to adhere local and global regulations can deface business reputations and brands. Thus with the growing awareness of CSR, today numerous corporate houses have started recognizing corporate social responsibility as a platform for growth and differentiation.