User talk:Vcmowleeswaran

What is Corporate Social Responsibility (CSR)?

Corporate Social Responsibility (CSR) is an instrument of positive change taking place in organisations and businesses. It sets the framework and defines the method in which organisations and businesses must operate to be able to meet the ethical, legal, commercial and public expectations that a society has of any organisation. This means that they will need to undergo a major mind-shift and culture change to become socially, environmentally and economically responsible towards their employees, shareholders and the stakeholders involved.

Corporate Social Responsibility (CSR) is also an approach that takes into account the social impact an organisation has on the community both local and global. The main aim of the concept is to bring together all sectors (public, voluntary and business) and work together to eliminate the old idea that economic and environmental issues are in conflict.

By transforming the way any business is conducted — internally and externally — companies can now maintain their success and growth and achieve sustainability.

The business case for CSR is dependant on the type and size of organisation involved. However, the outcome of committing to the concept is both beneficial and worthwhile for all sizes. Organisations and Businesses that are strict in adopting and implementing corporate governance practices, standards and measures will see improvement in their financial performance, an increased level of public and market trust in their products and a reduced risk of bad decision making and lack of personal accountability.

CSR is a fertile ground for innovation, creativity and challenges old ideas and working practices by allowing a voice for all stakeholders. The result is that CSR is emerging as a powerful channel to ensure positive development for organisations of all sizes (including SMEs). Faced with increasing social and environmental challenges tomorrows managers will be expected to combine skills that go well beyond what traditional business teaching currently provides.

CSR is not just for big corporations to make the more profit ignoring the issues and challenges facing Small to Medium Enterprises. CSR is moving up the agenda for all businesses and organisations. CSR is part of the European drive to unlock the value of business, and encourage organisational responsibility for community and social activities. It also strives to reach a goal to become the most dynamic knowledge based economy in the world by 2010. CSR is also a means of building on existing achievements and good practice to benefit all organisations and their stakeholders.

The drivers for some organisations may be very different from those of large businesses and organisations. However as bigger businesses become more aware of their ethical and environmental codes of practice, engagement with small businesses their processes and practices enter into the spotlight. There is a common ground with all sizes of organisations and business and that is the driver to improve customer loyalty and better local community relations.

By V.Chandramowleeswaran vcmowleeswaran@hotmail.com