8/10/2019 CSR summary.docx
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Corporate Social Responsibility or CSR is a comprehensive term
that includes the concept of social,
environmental, financial and legal obligations of a company.CSR
cannot be simply labeled as a strategic,
marketing or business issue as its a mixture of all these
factors. Against a backdrop of accounting and
fraud scandals unearthed, implementation of CSR has become
essential to ensure the long term
commercial success and survival of an organization. It helps to
broaden the companies accountability to
include all stakeholders- suppliers, investors, employees,
customers and the wider community. When
analyzed as a strategic issue, it prompts the company to
evaluate its mission and provides a framework
to build credibility with customers and employees. The risk of
damage to business reputation due to
corporate misbehavior can be mitigated by using CSR as a tool to
restore trust in the companies
behavior, products and services. This can help to tackle the
business issue arising due to mounting
pressure from NGOs who are demanding companies to show awareness
and concern for environment as
well as for the rights and interests of employees.
Companies will not be able to fulfill their CSR responsibilities
by merely undertaking some
noncommercial activities to boost their brand image. It requires
a holistic view of the organization,
review of business values and acceptance of the moral commitment
of the firm. A proper and
systematic approach in enforcement of CSR initiatives will aid
in securing the companys license to
operate as employees and consumers are placing more importance
these days on the brand image and
ethical values of the firm. A business which fails to identify
its purpose in relation to progress of human
welfare in some way will find it difficult to sustain its
operation.
Relationship of the organization with employees forms an
integral part of CSR as employees are an
important part of the community. Its in this context that HR
managers play a significant role as
employee champion. HR managers have the responsibility to make
employees aware of the reason
behind implementation of CSR initiatives without which the
efforts are bound to be unsuccessful. They
can help in handling employee relationships, manage risk by
maintaining efficient internal control and
ensure effective implementation of corporate policies. Survival
of CSR depends on the extent to whichthese initiatives are
incorporated in the organizations culture which requires the
specific expertise of
HR managers to manage change, risk and inculcate trust. CSR
initiatives broaden their agenda and offers
new avenues for extending their existing knowledge and skills.
Proper treatment of employees by a firm
will ensure employee retention and improve the image of the
firm. Developing a suitable way of
implementing whistleblower policies, an open communication
system and devising correct solutions to
employee grievances also falls under the purview of HR manager.
A model of psychological contract can
be used to analyze employee satisfaction and a positive
psychological contract can be established by
having a fair and favorable workplace. Companies should make
efforts to build its corporate image as a
good employer and as a company that follows ethical practices to
attract and retain employees and
consumers. Starting point for developing CSR activities can be
done by listing the code of ethics thatmust guide
employeesbehavior. Ensuring support of top management,
identification of core values,
key stakeholders and issues affecting stakeholder relationships,
consultation and implementation are
the main steps to implement CSR. HR managers have the duty to
make CSR a reality after taking
valuable inputs from employees. A balanced scorecard approach
can be used to measure outcome.
Public sector should also give priority to CSR initiatives
considering the increased relevance of CSR in the
present scenario.
