Founded in 2008, Fiinovation is a research based CSR consulting firm that helps organizations engage in CSR initiatives which are in-sync with business objectives of the companies.
Corporate Social Responsibility – What and Why?
The term, process or initiative, “Corporate Social Responsibility” is self-explanatory! It simply refers to, or rather describes all corporate efforts directed towards the betterment of society at large. Companies are indeed responsible to contribute their mite in order to improve the socio-economic and environmental infrastructure they thrive in and benefit from, in whatever manner they choose to. However, all CSR initiatives tend to work towards sustainable business operations that are mutually beneficial to the society as well as the company.
The new found importance and significance of CSR in India is attributable to fact that as of 1st April 2014 CSR contributions are mandatory as per the new Indian Companies Act 2013, with limits on applicability though. Companies are free to choose social causes that best appeal to them. From charity and green initiatives to doing away with child labour or procuring raw material from sustainable sources options are aplenty. In some countries across the world, CSR efforts are voluntary.
What’s the compelling need for corporate firms to invest their valuable time, efforts and money in CSR, especially as a voluntary commitment?
Companies are a part of the society and are affected both directly and indirectly by the different problems that are rampant, especially in present times. From drastic climatic changes, depletion of natural resources and environmental pollution to poverty, unemployment, illiteracy, crime and epidemics people face an array problems, some of them a threat to survival. The scale and extent of these problems cannot be solely addressed by the Government machinery. It is but a moral obligation for companies to invest spare resources to alleviate these problems to the best of their abilities. In case of countries where CSR is a mandatory legal requirement and compliance is enforced.
CSR initiatives, irrespective of whether voluntary or enforced, prove to be beneficial to all stakeholders. While society or social causes are main beneficiaries of this process, it is worth noting that companies too stand to reap rewards in several ways such as:
CSR efforts themselves speak volumes about the company and its core values, which are otherwise difficult to express via conventional marketing techniques. Walking the talk, helps gets the message across more effectively.
Positive brand image and reputation
Contributing to a social cause automatically tends to enhance the image and reputation of the firm. The concern for people and planet evident from the Company’s policies and further emphasized via practices, serve to gain the trust and respect of competitors and beneficiaries alike.
New business prospects from clients who appreciate CSR efforts
Most customers or clients are drawn towards companies that invest in CSR, partly because they appreciate the cause or the gesture. More importantly they also get to indirectly participate in the effort, by shopping for products or services offered by the company or by forging business deals.
Customer Loyalty and Satisfaction
Companies also tend to retain the loyalty of existing customers, as they now have all the reason to be happy for having chosen the specific brand. Some of them may even be willing to spend a little more the next time they buy a particular brand of products/services.
Employee Morale and Pride
It is indeed a matter of pride for employees to be working with a company that values social causes, rather than simply focus on revenues and profits. Such a workforce not only proves to be loyal but productive as well!
At Fiinovation we make sure that CSR initiatives must however be well-planned, relevant, transparent and result–oriented for the benefits to be visible.
Fiinovation Partnering Corporate
Companies have embedded corporate social responsibility into their businesses now due to the major landmark legislation came in the year 2013. The Companies Act, 2013 made India the first country to mandate CSR expenditure. This was a major breakthrough in social welfare sector and effectively it has changed lives of many oppressed and poor people.
The act came into force from April 1, 2014, and according to act every company, private limited or public limited, which either has a net worth of Rs 500 crore or more, total turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, in any of the financial year needs to spend at least 2% of its average net profiting on societal, economical and ecological aspects in accordance to the activities mentioned in CSR chart.
Corporate shall constitute Corporate Social Responsibility Committee to develop specific CSR policy. Further, these policies are approved by the board consisting of three independent members.
Our Services towards Corporate
We Fiinovation, work in accordance with the corporate for social development. Just like commercial sector, social investment also demands research and planning for effective implementation to get positive outcome. CSR must be done with respect to the activities mentioned in the act which includes, eradicating hunger, promoting education, promoting gender equality, preserving nature and ecology etc.
Our work is to design the structure of the company’s CSR initiative according to their social purposes. We maintain, plan all the aspects of the CSR work and prepare a blue-print of the project. Further, we set up laboratories to ensure the quality and use all the latest tools of management. We study, research and layout, cost of the project, risk management, time taken, monitoring guidelines and the impact which would be caused on the society through the initiative.
- As per the companies act of 2013, any company which has a turnover of Rs 1000 crore or net profit of 500 crore need to spend on CSR activities. In order to turn CSR more effective government has brought CSR awards to motivate companies and indulge in CSR activities.
- The president of India, while addressing convocation expressed his satisfaction on the increased forest cover in India from 64.2 million hectares to 79.4 million hectors. He said that the key is to develop and focus on the sustainable utilization of natural resources with a robust commitment to remove poverty and hunger worldwide.
- While addressing the probationary IFS officers in Dehradun, Mr. Pranab Mukherjee has reminded the young officers to come up with expert solutions to development vs. conservation debate. He asked them to treat development and environment as complementary to each other.
- President Pranab Mukherjee has asked young Indian forest service’s officers to provide solutions over the impact of climate change and water scarcity. He asks for balance between conservation and development.
- Corporate Trip
After reading the review of Fiinovation corporate trip we went to the solang valley resort for our team building exercise. I must say the place is amazing with good food and stay. The resort is located in a nice place which is serene and quiet. It is good place to be away from the crowd. But I disagree with the part of the service. The staff are so busy that it takes time for them to attend to you. This shouldn’t be the case and adequate arrangements need to be made on time. I am sure these are management issues which can be sorted out. But overall the place is amazing and one can definitely pay a visit.
- Vedanata is expanding their CSR activities by increasing their budget near to 256 crore in FY 18 and also working on CSR activities in Rajasthan, Goa, Gujarat, Andhra Pradesh, Chhattisgarh, Punjab, Tamil Nadu and Uttarakhand.
- Vedanata has announced its proposal to modernize 4000 anganwadis in partnership to the Union ministry of women and child development. It will focus on children’s health, education and skill development for women.
- The CEO of Bharat Aluminium said the company will spend 50% of its investment on creating Nand Ghars (modern anganwadis). These Nand Gharas will be equipped with interactive learning aid to ensure holistic development of the child.
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