Why Companies Should Invest In CSR Policy?


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Corporate social responsibility is not a new concept, it is referred to as a corporate initiative to assess and take a certain responsibility for the effect on the environment and also for the benefit of social welfare. India is the first country to make CSR mandatory. Companies should invest in areas such as education, poverty, gender equality and hunger as a part of CSR compliance. CSR policy aims at enlisting the objectives and procedures to fulfill social responsibility. The main aim of this policy is to govern and enhance the employability of future generations and to enhance the sustainability of Non-Governmental Organization.

Companies must invest in CSR policy to encourage the practices for capturing relevant issues tp foster and encourage sustainable growth. Efficient companies should invest in this policy so as to provide and encourage research, training, practice and attaining recognition in the field. This act defines that the companies who have a great turnover must spend some amount on this so as to make the activities in NGOs go well. NGOs are private voluntary organizations that have played a major role in solving social and environmental issues without the interference of government. CSR aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment.

companies investing in csr policy

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CSR is the process by which an organization evolves its relationship with the companies for the effective common good. CSR is not a charity or donations. This is a way of conducting business by which corporates contribute to social good. These companies do not limit themselves to just use the resources to engage in activities that increase their profit. Companies use this policy to integrate economic, environmental and social objections that they want to observe in their growth. Companies must spend at least two percent of their average net profit to encourage people to grow and develop their skills. This must be followed to undertake the company and the amount of expenditure they spend on the activities which are referred to monitor the cause of the same.

The objective of this policy is to establish a guideline for compliance to dedicate a percent of share for the benefit of the company for social projects. This ensures its implementation in the initiatives through the appropriate procedure. This also creates opportunities for employees to participate in socially responsible initiatives. This policy relates to the activities which have to be undertaken by the company to adhere to their social activities for people who are in need to gain profit. The activities of CSR policy include eradicating hunger, poverty & malnutrition which promotes healthcare & sanitation activities which makes everything safe.

These activities also promote education which includes special education & employment enhancing skills, especially for women and girls. These promote activities for gender quality, empowering women which promotes giving benefits of NGOs. These activities reduce child mortality and improve maternal health by affording beneficial good hospital facilities. This activity has ensured environmental sustainability, an ecological balance that reserves the conservation of natural resources.

NGOs are benefited from advanced and effective activities that focus on improving the condition of the organization. NGO Sofia strives to strengthen the position of women by making the women educated and financially independent. These activities help people in becoming educated and fight for their right to justice and equality. The main aim of NGO is to help people live with dignity and security. NGO Sofia is a Delhi based NGO which is registered under the societies registration act.

This NGO has the initiative to facilitate rehabilitation of the growth. This NGO strengthens the position of women by making them educated and financially independent. Companies who are interested in doing social activities must invest in the CSR policy to help people in fighting discrimination. This policy has helped many people in fulfilling their basic needs and empowering them to live an empowered life.

CSR policy determines the future of children and the country. This helps in realizing the full potential in life by transforming them into a sensible citizen. This is responsible for educating and funding the children to become capable and pursue their dreams. Companies must support NGOs and help them in creating awareness.

Tenjit Sharma
Tenjit Dev Sharma is Senior Marketing Manager (Product) at BetterCommerce, Delivering enterprise scale commerce for D2C brands and mid-market retailers.


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