Meaning and Definition of CSR (corporate Social Responsibility) , Need for CSR [Part-4] 

Meaning of CSR or Social Responsibility of Business
Social responsibility or corporate social responsibility (CSR)is self- Imposed restriction by companies on their activities. CSR is recent term but it has been followed by companies from many year ago. Companies knows their responsibilities towards the society where they exist.
CSR refers to those activities through which companies control their actions and check whether they are following ethical and legal norms. CSR should be followed by voluntary by each org.
‘Social Responsibility” implies an obligation to deal with social problems that business organizations are believed to have towards the society in which they function.
Sec 135 of Company Act 2013 talks about CSR
Definition-
acc. to cannon “Corporate Social Responsibility means devising corporate strategies and building a business with the society’s needs in mind”.
NEED FOR SOCIAL RESPONSIBILITY
1- Changing expectations of society: Today’s world has changed a lot compared to the past years. Now, society expects different things from a business besides the supply of goods and services. As society provides companies with different resources like labour, natural resources, etc., it expects something good in return for their welfare.
2- Reputation: Companies spend a lot of money on brand building and a good image in society. To do so, an organization can also perform socially responsible practices that will it result in profitability, increased sales, sustainable growth, a good image and attraction of talent.
3- Avoidance of government interference: Government has enacted various laws, putting moral and legal pressure on the companies to perform socially responsible activities. If the company fails or avoids these practices, the government will interfere in the business. Therefore, to avoid such interference by the government, companies need to perform their social responsibilities.
4- Contribution to social problems: Businesses create some of the social problems, like pollution, inequality, discrimination, unsafe workplace, etc. Therefore, it is those firms’ duty and obligation to perform socially responsible activities to solve these social problems and make society better and safe.
5- Better environment for business: Businesses use natural resources for their daily activities of the business and usually degrade the environment in the process. Therefore, business organizations need to avoid environmental degradation caused by them. It not only benefits society, but also gives firms a chance to grow their business in a healthy and safe environment.
6- Growth of Consumer: The consumer of the present world is more educated and aware of their rights and powers as compared to the past. They know when a business is engaged in unfair trade practices, giving them bad quality goods and services, charging more price, etc., and what measures they can take for the same. Therefore, organizations need to work with social responsibility to retain existing customers and attract more.
7- Optimum utilization of resources: One of the aims of businesses while producing and selling goods and services to customers is optimum utilization of resources. As we know that with the increase in population, resources have become scarce, and we need to save them for future generations. Therefore, business organizations need to make optimum utilization of resources and work with social responsibility.
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