Gone are the days when business houses used to do community service by the side of business through charity with a paternalistic approach. Responsibility towards society, known as corporate social responsibility, is no longer just charity. It has evolved beyond simple donations with less accountability of the person/NGO receiving such donations, resulting in a disconnect between business processes and CSR activities.
CSR and New Company Law
With the new company law in force making CSR mandatory for companies in India, possibly the first in the world to move in this direction, companies must become more strategic in their CSR projects. The inclusion of CSR as a mandate aims to complement government efforts to equitably deliver the benefits of growth and engage corporate entities with the country's development agenda. Consequently, companies now need to integrate CSR into corporate governance because the combination of regulatory and societal pressures means that companies must approach their CSR initiatives more professionally. Companies must ensure that their CSR initiatives have a significant impact on society, requiring two essential elements: a strategic approach and passionate leadership that firmly believes in CSR.
Strategic CSR: A Shift from Charity
It is imperative to shift towards Strategic CSR instead of ad-hoc charity or mere compliance orientation. To ensure long-lasting impact, this initiative must be supported by employees. HR teams need to dedicate efforts to ensure that CSR investments lead to the improvement of disadvantaged and marginalized segments of society and enhance stakeholder relations. Maximizing returns for all stakeholders hinges on developing effective and needs-based CSR strategies to ensure that investments yield intended results. Employees are crucial stakeholders in any business, and their perspective on CSR cannot be overlooked. They can serve as agents of social change by encouraging the company to adopt socially responsible behavior. HR plays a vital role in ensuring that CSR teams design activities in a sustainable, stable, and results-oriented manner.
Insights from Business Manager Magazine
The cover story of Business Manager magazine's October 2014 issue delves into the concept of CSR, the intent and requirements of the new law, and its implications, highlighting successful CSR initiatives undertaken by some business houses. Archana Balasubramanian, Shivi Kalia, Rajiv Williams, Pawan Kaushik, P.B.S. Kumar, Indranil Banerjee, and Chandini Jafiri shared their views alongside insights on the new CSR rules.
Regards
CSR and New Company Law
With the new company law in force making CSR mandatory for companies in India, possibly the first in the world to move in this direction, companies must become more strategic in their CSR projects. The inclusion of CSR as a mandate aims to complement government efforts to equitably deliver the benefits of growth and engage corporate entities with the country's development agenda. Consequently, companies now need to integrate CSR into corporate governance because the combination of regulatory and societal pressures means that companies must approach their CSR initiatives more professionally. Companies must ensure that their CSR initiatives have a significant impact on society, requiring two essential elements: a strategic approach and passionate leadership that firmly believes in CSR.
Strategic CSR: A Shift from Charity
It is imperative to shift towards Strategic CSR instead of ad-hoc charity or mere compliance orientation. To ensure long-lasting impact, this initiative must be supported by employees. HR teams need to dedicate efforts to ensure that CSR investments lead to the improvement of disadvantaged and marginalized segments of society and enhance stakeholder relations. Maximizing returns for all stakeholders hinges on developing effective and needs-based CSR strategies to ensure that investments yield intended results. Employees are crucial stakeholders in any business, and their perspective on CSR cannot be overlooked. They can serve as agents of social change by encouraging the company to adopt socially responsible behavior. HR plays a vital role in ensuring that CSR teams design activities in a sustainable, stable, and results-oriented manner.
Insights from Business Manager Magazine
The cover story of Business Manager magazine's October 2014 issue delves into the concept of CSR, the intent and requirements of the new law, and its implications, highlighting successful CSR initiatives undertaken by some business houses. Archana Balasubramanian, Shivi Kalia, Rajiv Williams, Pawan Kaushik, P.B.S. Kumar, Indranil Banerjee, and Chandini Jafiri shared their views alongside insights on the new CSR rules.
Regards
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