BENEFITS OF CSR

Apart from the aspect of "Doing Good", there are defined strategic benefits of taking up CSR and Sustainability initiatives, which makes it a win-win scenario for the corporate as well as society. Some of the benefits are provided below:


Risk Management :

Engagement in CSR activities helps the companies manage emerging social risks which may emerge as an offshoot of their operational activities. As a result the companies get a social license to operate, which helps maintain a positive image in the market and winning the confidence of people.


Strengthened Brand Positioning :

Through CSR, companies can positively influence the perception of the people. Thus strengthening the brand image in the eyes of the consumers, community, regulators, employees and the suppliers.


Increased Sales and Market share:

Consumers like to be associated with a company, which is ethical and has a positive image. Many companies have become innovative and started contributing a certain portion of their sales to certain cause. This has 2 fold benefits; it increases the brand image as well as helps in differentiating the product from their direct competitors and hence increases in sales.

Increased ability to attract, motivate and retain employees: CSR helps companies to be known as a responsible corporate citizen with sensitivity towards social and environmental issues. Such an image of the corporate helps employees and communities ally with the corporate Vision and Mission, as they all feel alike and contribute towards a common goal.


Increased appeal to investors and financial analysts:

There are many financial institutions globally, which have made it part of their policy to study the CSR activities of the company before investing. M&A decisions are also taken after consideration of CSR and Sustainability activities, even if it makes perfect economic sense for the investors.


Enhanced Corporate Image:

CSR helps in enhancing the image of a company, which helps in long term strategy. It allows the company to have certain respect in different circles and also the positive image of the top management.

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