Aim Behind Corporate Social responsibility should be?

Image building and risk management

A positive image holds the organisation in good stead through ups and downs. It provides the kind of security that no amount of capital gains or profits can ever equal. Coca-Cola India had started with a corpus of US$ 10 million for its CSR activities in 2008. It had undertaken US$ 25-30 million a year project on water conservation, and the project "Elixir of life" to provide drinking water to nearly 30,000 school children. Coca-Cola India won the 'Golden Peacock Global Award for Corporate Social Responsibility - 2008' for these initiatives. That is the reason why the company has managed to report burgeoning sales and profits despite the tons of negative publicity they garner, with respect to health hazards of drinking aerated drinks.

Build public opinion and initiate action

The Confederation of Indian Industry's 'Mission on Sustainable Growth' has set up a code which was formulated in 2006. It provides consultancy services and technical assistance on social development and CSR. The mission's aims are to promote the reduction of excessive consumption of natural resources and emission of greenhouse gases. The code had started with 23 new signatories and the total number of code signatories had gone up to 102, by September 2008. Many large corporate houses are taking up projects-along with the help of the government-which are 'green' to promote the cause of sustainable development. When the organisation spurs people to act through its initiatives, the aims of the company stop being just to sell its products. Instead, the company becomes an agent of change and evolution in its chosen field. In fact, businesses can go a long way in eradicating long standing socially unacceptable practises.

Opportunity for creativity

Many corporate social responsibility ventures are immensely creative in the way they are so suited to the company and its objectives. India Inc has started encouraging 'intrapreneurs' or employees who have ideas that could potentially become a venture, and most of these intrapreneurs end up directing these projects and ventures. Some companies promoting intrapreneurship include Adobe, NIIT, KPMG, Pepsi and Microsoft.

Create a win-win situation

Many products encourage do-gooder customers to choose their products over others, by offering to pledge part of the sales to a charitable organisation. It is a common practise in many shopping malls to ask customers to contribute one rupee extra to their bill. If they do, the mall also contributes a rupee thus doubling the contribution.

Provide multiple business opportunities

Corporate companies like ITC have made farmer development a vital part of its business strategy, and made major efforts to improve the livelihood standards of rural communities. Unilever is using micro enterprises to strategically augment the penetration of consumer products in rural markets. IT companies like TCS and Wipro have developed software to help teachers and children in schools across India to further the cause of education. The adult literacy software has been a significant factor in reducing illiteracy in remote communities. Banks and insurance companies are targeting migrant labourers and street vendors to help them through micro-credits and related schemes. In this way, the company achieves its goals of diversification and increased sales markets and profits, along with fulfilling its social responsibilities.