Socioeconomic Benefits of CSR

Abstract

Businesses exist for the sole purpose of earning profit. The activities performed during business operations affects society and the economy. The effects depend on the resources used and the type of activity performed by the business organization. Due to public awareness and the United Nations 2030 sustainable vision, the society demands the organization act as a responsible corporate citizen. To ensure its responsibility, organizations strategize CSR initiatives and practices. The CSR practices compensate organizational, operational activities through which it earns premiums by consuming resources. The practices thus remove any doubt of its exploitation of resources. CSR practices and initiatives help to portrays the human side of the corporation. Companies, by their CSR practices, benefit the effected communities, which are affected by their business activities. Society uses the socioeconomic lens to gauge the impact of the company's CSR practice.