Importance of CSR in Inclusive Development
Corporates are aware of the importance of CSR in the present scenario, but are not aware of the right kind of CSR activities which would lead to creating an impact in the lives of the people and capacity building. This study will try to bring out the importance of CSR activities to the corporates (Cause Related Marketing) and the role which it can play in brand enhancement. The focus would not only be on impacting lives of the people but also the nature and wildlife animals (sustainable development). Keywords: CSR; Cause Related Marketing; Inclusive Development Introduction
Off late there has been a lot of talk about Corporate Social Responsibility (CSR) in India because of the new Companies Bill 2013 which recently received the president’s ascent (Express, 2013). The law mandates certain companies to dedicate 2% of their net-profit (average of current year and preceding 2 years) towards CSR activities. Even before this bill there were a lot of corporates who were involved in doing CSR activities. Corporates need to give back to the society in some way or the other. It can either be through better employee engagement programs, improving their processes and making them more eco-friendly, giving money to Non Governmental Organisation (NGO’s), helping in the development of the local area wherein they operate etc. All these activities show the sense of responsibility the corporates have and hence leads to higher brand equity. CSR strengths are perceived as value-creating, reversing the earlier negative into a positive impact on recommendations: analysts are more likely to recommend a stock “buy” for CSR-strong firms in later years, documenting a change of CSR perception over time at the analyst level (Ioannou & Serafeim , 2010). It is very difficult for every government to help the society grow without the help of the private sector. The corporates need to understand the importance of growing the standards of living of the people of their country. Inclusive development can only help a developing country fight against the developed ones. Corporate need to see the bigger picture that if the standard of living is improved the purchasing power will also improve which ultimately benefit them.
Some authors seem to have a very instrumental perspective on CSR marketing, as Eun Kyoo Kim et al. (2012) state that firms need to develop strategic CSR ads that positively influence consumer attitudes and decisions, because advertising certain products or services triggers the feeling of hope and creates specific goals. This means that if CSR is to contribute to sustainable development, marketing strategies need to move beyond their immediate goal and need to be related to a broader firm-wide CSR strategy (Hugé & Waas , 2011). As per a study as much as 42% interviewed said that their perceptions of a company is based on the firm’s corporate social responsibility (CSR) initiatives. (Forbes, 2013) Literature Review
Corporate Social Responsibility
Although the literature has not reached consensus on a precise definition, CSR is generally conceived of as a single broad construct comprised of actions aimed at stakeholder management and social issue management (Clarkson, 1995; Swanson, 1995; Hillman and Keim, 2001; Wood, 1991). Corporate Social Responsibility profoundly influenced customer loyalty and valuation of various business services. It was ascertained that Corporate Social Responsibility had a lot of influence on the customers’ behavior. This was done through the identification of the various dimensions of social responsibility from the point of view of consumers and the weight of each of the dimension in the global construct of social responsibility. It is not, however, easy for consumers or customers to memorize and acquire information regarding a company’s social responsibility. (Crespo, 2005).The present study has been conducted with the objective of assessing the...
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