The main purpose of CSR is to make corporate business activities and corporate culture sustainable in following three aspects:
1) Economic aspects
2) Social aspects
3) Environmental and Ecological aspects.
The dimensional aspect has much more importance for management studies. The human and non- human aspect of any organization is its core asset, as they are the data generators as well as data users for corporate social responsibility. Businesses and management have to align profitable opportunities with their social identities and underline values of corporate social responsibility. The today’s world has going on to the rapid development. Hence, these three dimensional aspect are more important for business as well as management.
1.3.1 Economic aspects of CSR:
The economic aspects of CSR consist and impact of company operations. The economic issues have long term discussed of CSR. The economic aspects have been widely assumed to be well managed. However, it is actually understood by many of corporate and public policy agendas, and underrepresented the corporate responsibility agenda. The economic dimension of the sustainability agenda should rather consider that the organizations operations. The economic aspect of multiplier effect of its stakeholders, non – profit organizations, customer, supplier and the communities in which the company operates.
1.3.2 Social aspects of CSR:
Social responsibility is the new dimension of CSR. Many organizations are becoming increasingly active role in social concern. Social responsibility means being accountable and auditable social effects on the company and its people even indirectly. This includes stakeholders – including people within the company, in the supply chain of the company, in the community the company is in and as customers of the company etc. The following key social aspects of CSR for organizations are:
22.214.171.124 Social responsibility towards customers:
Customers have been described as kings of business. The customers are solely responsible for making the right decision in the market to get the best gains. The satisfied customer is with the products and services provided by the business, the more profits business can reap. The responsibility towards include such issue as the safety and durability of products or services; standard or after sales service; prompt and courteous attention to queries and complaints; adequate supply of products or services; fair standards of advertising and trading; and full and unambiguous information to potential customers.
126.96.36.199 Responsibility towards Employees:
Business are major contributor to community for generate of employment. However, social responsibility to employees extends beyond terms and conditions of the formal construct of business employment. Companies has wider expectations that today’s employees for the quality of their working life. Such expectations include welfare and safety at work and upholding their skills and motivation for the work. Beyond these social responsible companies secure, and equal opportunities for all its employees, regardless of age, gender, religion, caste etc.
188.8.131.52 Responsibility towards the Community:
The company community includes additional vocational training places, recruiting socially excluded people, sponsoring local sports and cultural events, and through partnerships with communities or donations to charitable activities. The companies depends on the community includes health, stability and prosperity.
1.3.3 Environmental and Ecological aspects of CSR:
Environment is key pillar of the CSR. Environmental and ecological issues have been an important topic of discussion for the past thirty years in the business world. Corporate activity may have many way effects on the environment. Usually, environmental impact refers to the negative effects occurring in the natural environmental due to business operations. Such effects may include; pollution, wastage, degeneration of biodiversity, climate change etc.
Some companies have found that improving environmental performance using less material and streamlining processes to create less waste may lower the costs of operation significantly.
1.4 Social Responsibility in India:
Some efforts have been made in India to make business more responsible to society. A fair trade practices associations has been set up to check unfair practices on the part of trade. In March, 1965, an international seminar was held in New Delhi. The seminar defined the responsibility of business to various social groups. This was followed by another seminar at Calcutta in March, 1966 at which ways and means were outlined for the implementation of the concept of social responsibility. A national committee on social responsibility of business too was constituted. In July1980, a novel scheme was launched under which big business houses were to adopt 100 villages and develop them as model villages. The idea was to make the rural economy economically self – reliant.
On the other hand, a nonprofit organization is an organization, which exists for providing some benefit or assistance or a sort of self help Group. Like the name suggests, the organization will have the properties of a profit making organization. i.e. a mission statement, a vision, offices, infrastructures etc, but the objective will not include making a profit out of its operations. However to run any organization, fund is needed, and this has to come in to the non – profit in terms of financial i.e. grants, subsidies, donations etc or services in terms of staff support or infrastructure support. The sources for these funds could be individual, the government or other charitable institutions and finally companies. These business houses through their corporate social responsibility initiatives contribute to the mission of social progress and growth of India.
Now a day combined effect of socio-economic factors and political factors led to the development of social responsibility and famous families like Tata, Birla, Shri Ram, Godrej, Dalpatbhai Lalbhai, Singhania, Modi, Murugappa Chettiar, Kuppuswamy Naidu, Mafatlal, Mahindras and other became the backbone of India’s social strength. These families are the pride of India.