Saturday, March 17, 2012

Emerging Trends in Corporate Social Responsiblity


CSR can be described as a commitment by Businesses towards Social and Economic development of the communities they serve. As economies get integrated and develop, this act as a catalyst for the new initiatives taken in the field of CSR activities.


As per CSR ASIA report, the Emerging themes in Social responsibility sector are - 
Corporate Governance
Climate Change
Labor and Human Resources
Bribery and Corruption
Community involvement and Pro Poor development 


From time and again we have seen the Economic Cycles of Development and Recession. This trend has lead to demand of - Good Governance, Corporate Accountability,Corporate Disclosure Policies and Trust, to be implemented in the policies governing the CSR activities.





Earlier the CSR strategy implemented the Philanthropy based model which has several inherent issues such as - 
1. Non commitment of complete resources for such projects.Such projects were often confined to one time grant or periodic financial support.


2. The corporations does not felt the need of community involvement.The success of such projects were often limited to few people from the management of the corporations.


3. Lack of direct involvement by corporations lead to non transparency and lack of financial accountability in such projects.


However, the present trend has changed to Stakeholder Participation based model. Few principles of such a model are - 


--> Dependence on Empowerment and Partnership.
--> The community in which the corporation works is seen as the Primary Stakeholder.Thus the corporation has duties towards the community it serves.
--> The CSR activities are performed in NON Financial based sectors such as Environment policies,Community development and Business Ethics. Hence accountability standards are now changed to the TRIPLE BOTTOM LINE - a Social,Environmental and Financial performance evaluation methodology.

Thus, the growing importance attached to the ‘Eco-social’ stability i.e. social and environmental stability and sustainability is necessary for the survival of a free market economy in the long run. This can be well achieved through the emerging trends in CSR activities.



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