Importance of Corporate Social Responsibility for Community Development

Corporate Social Responsibility (CSR) looks combination of corporate, social and responsibility but it is more than the words used in addressing the CSR. Due to name as CSR common mass think it is a corporate thinking for tackling environmental, social and government problems. In principal CSR is community development program which engage l people around business as stakeholder. Philip Kotler and Nancy Lee defined CSR as “A commitment to improve community well being through discretionary business practices and contributions of corporate resources”. CSR is continuing commitment by business to behave ethically and contribute to social and economical development while improving the quality of life of the workforce, their families and the local community around them. CSR is multi layered concept that can differentiate into four interrelated aspects economic, legal, ethical and philanthropic responsibilities. In new paradigm of globalization, the economic development and liberalization of economic policies is priority in developing countries to compete with developed countries. This is being increasingly realized that principles of shared governance benefit both the economy and the business. This is not only help in ensuring long term growth of business but also provide sustainable development. CSR also helps in lowering cost of economics resources through local and regional development of area. The concept of good governance through ethical business suggests holistic approach both as tool for wealth creation and as useful means for social and sustainable development. In market oriented economic structure corporate sector is the prime mover of economic growth. Employees, community, suppliers and shareholders today are redefining the role of corporate taking into account the corporate in the broader responsibility towards society. Environment apart economic performance which evaluated whether companies are conducting their role in socially responsible manner or not. CSR is a business imperative which pursued as voluntary business initiative or for legal compliance reasons. CSR is link to sustainable development and way to manage businesses. There is understanding that businesses invest money in society so they the one who will decide upon the modus operandi of the CSR initiative but it is not true. CSR activities are combination of mandate of different stakeholders needs must be considered within the local context and culture for implementation of any program and activity. Budgets are only part of resources planning for development which need well accompanied by people for successful CSR plan. The competition among different business is increasing day by day due to consequence of cross border trade, multinational enterprises and global supply chains.