Understanding the Relationship between CSR and Business Performance

Abstract

Society and business are two sides of the same coin which balance and complement each other. It has been observed that the organizations who understand the above and include social dimensions in their business strategy are generally winners in the long run. These organizations do not focus upon profitability alone as a tool for survival and sustainability but also include the interest of the society in their strategic plans and Business goals. Ignoring social responsibility can have long term and far reaching impact on the business affecting it negatively. The need is to bring about the change in the attitude towards CSR activities an organization undertakes to fulfil the above requirement. CSR is often misunderstood as philanthropic activities while it is closely associated with the overall wellbeing of the organization. Therefore, many organizations have accepted the same and brought about strategic approach to CSR, which creates a synergy between community and business initiatives. With this thought in background the business stakeholder's concept cannot be defined by ignoring the social angle attached to it and therefore CSR must be central to business and strategic plans.