Corporate Social responsibility (CSR) by small and medium enterprises is an act in which an organization contributes to its employees, their families and society at large by means of welfare & training programs.
CSR should be looked upon as an investment in an asset rather than an expense. Brands or products which sell are not only judged by price or quality but also by the companies that produce them.
In 2002 PricewaterhouseCoopers (http://www.pwc.com/) survey of 1,200 business leaders found that 70% of CEO agrees that CSR is vital to the profitability of any company.
It does not costs a lot to engage in fair CSR practices. All you need is a will to make a difference and carve a niche.
CSR is not just a fad or a buzzword. Its a big concern among corporates so that they can change the world. Consumers are encouraged to buy ethically produced good and services.
CSR is very much needed for long term growth and future prospects of an organization. More transparent and fair business practice can improve relationship with the customers and public awareness increase.
Good practice of CSR helps in creating new market opportunities and customers. It should take care of the legal issues and should not break the law and indulge in any unlawful act or practice.
People does not wants to associate with a firm which is involved in various Scandals and carries on fraudulent activities. Its taught to corporates by means of various conferences. There is no one size fits all formula, every company has got its own pros and cons and all of them cannot adopt the same practices.
A company which does good CSR practices is recognized by the public at large so it doesn't face resentment from public. Employee recruitment becomes easy and it helps in attracting and retaining the best people. Employee retention increases and the rate of attrition decrease. Its because there is an emotional attachment with the organization Companies can show their CSR report to attract the best talent to prosper and attract the best brains.
CSR is also levied by the government so that the corporates take care of the rules and regulations while doing business. CSR brings SME's closer to the society and they get good support from employees and public because a sense of respect is created in them for the Organization where they are working.
There are a lot of SME's which pollute the environment by polluting the air and water. This in turns leads to serious health hazards and various incurable disease. The polluting water is breeding ground for bacteria and fungus which leads to skin disorders and serious intestinal disorders. If there is high levels of mercury in the pollutant it leads to mass killing of water animals and incurable diseases in Human beings. They also pollute the air which leads to serious lung diseases, heart diseases and Asthma.
These industries should take the following steps so that the environment is not polluted -
- Treat the water with various chemicals so that germs are killed.
- Build up a small system which removes all physical and chemical impurities from water so that the water can be reused.
- Use filters in Chimneys so that the gases which flows out of furnaces are free from toxic gases and carbon particles.
In Adityapur town (situated in Jharkhand state of India) several companies have come forward and with combined efforts, they were able to set up water treatment system in order to clear harmful gases and chemicals from flowing waters from these companies
People working for Industries which indulges in mining faces a lot of lung problem. They have to work inside mine and in the process of digging they inhale a lot of carbon particles which leads to lung diseases. Eyesight problem is caused due to regular exposure to carbon particles and it may so happen that workers suffer from poor eyesight problem in the long run.
Mining companies needs to provide few things to the employees so that minimal damages are caused -
1)Provide good helmets which filters carbon particles and also saves eye from harmful dust.
2)Regular health check ups to prevent serious health ailments among workers
We have heard a lot about TATAs and Infosys practicing CSR but now a lot of small and medium sized companies having 10 – 15 employees are adapting to a fair practice of CSR.
At VinayRas Infotech (Nagpur, Maharashtra, India) there is a scheme for every employee. An employee who performs gets a bonus and a good recognition in a firm. There is an employee insurance plan. The amount gets deducted quarterly from his salary. In this way he saves for the future.
There is a conference every year in which official delegations are carried out along with the stronger bondings. 2 Days programs is held where all family members can participate along with the general public. There is Blood Donation Camp, Community Training Programs, Awareness programs for HIV/AIDS, RTI, Better Farming, Healthy/Happy Living and so on.
VinayRas Infotech has also contributed with the help of JCI Nagpur Green City. VinayRas has also sponsored a child's secondary education. A tree plantation programs was carried out in which more than 300 saplings were planted in the Vidharba region of Maharashtra, india for better environment for the coming generation.
This essay was sent to JCI International for Essay Competition “Good practice of Corporate Social Responsibility in Small- and Medium-sized companies “ in October 2007
