CSR programs and initiatives are being taken by most companies now and this could lead to pressure to show a strong financial result because of conducting CSR activities. This is true for most companies and many wonder what the real intention of a CSR activity is? Is it to show better financial results or do something for the society?
This indeed loses the core reason of why CSR is there in the first place. However, it would be wrong to say that companies do not see some inherent profits from conducting CSR activities.
Most believe that it takes some three to five years for a good CSR strategy to actually start showing results. It could lead to better employee engagement and also better access to talent. CSR also leads to building a strong and reputed brand image. In the long run, the CSR initiatives could lead to the business getting into innovation seriously and transforming the culture of the company. It could also change the way the firm sees it today.
Companies are seriously attempting this and there are many today who have joined this bandwagon.
Some also think that CSR initiatives are not causing any extra pressure on the firm to show better financial results. There have had always been the push to show better results and this is going to stay forever. CSR initiatives do have an impact on the results of the company and it can be said without doubt that neglectingCSR activities are indeed foolish.
Companies have to start measuring the impact of CSR activities on the finances along with the other activities that they do. It is apart of the company actions and cannot be separated.The costs spent in doing CSR activities should not be kept on records to show what financial gains it could bring about.
CSR policies will secure the broad financial gains of the company.
Companies should aim to have a CSR program that is robust. This has many advantages.Shareholders are now very vocal about what they expect from the company. Having good CSR practices is sure to benefit the company in the long run but that should not let the company forget about the main reason to carry out the CSR activities.