“Business cannot exist in isolation; it cannot be oblivious to Societal Development”. Elaborate this statement.

Yes, it is true that business cannot exist in isolation; it cannot be oblivious to societal development. The social responsibility of business can be integrated into the business purpose so as to build a positive synergy between the two. It is the duty of company to undertake CSR activities because company and society are mutually interdependent on each other. No corporation in present world of globalization and liberalization can bear to have indifferent attitude towards the society, isolated existence is not possible. It is rightly said that business cannot exist in isolation; business cannot be oblivious to societal development. The social responsibility of business can be integrated into the business purpose so as to build a positive synergy between the two. Points explaining the synergy between the two are as follows: CSR creates a favourable public image, which attracts customers. Reputation or brand equity of the products of a company which understands and demonstrates its social responsibilities is very high. Customers trust the products of such a company and are willing to pay a premium on its products. CSR activities have its advantages. It builds up a positive image encouraging social involvement of employees, which in turn develops a sense of loyalty towards the organization, helping in creating a dedicated workforce proud of its company. Society gains through better neighbourhoods and employment opportunities, while the organization benefits from a better community, which is the main source of its workforce and the consumer of its products. Public needs have changed leading to changed expectations from consumers. The industry/business owes its very existence to society and has to respond to the needs of the society. The company's social involvement discourages excessive regulation or intervention from the Government or statutory bodies, and hence gives greater freedom and flexibility in decision-making. The internal activities of the organisation have an impact on the external environment, since the society is an inter-dependent system. A business organisation has a great deal of power and money, entrusted upon it by the society and should be accompanied by an equal amount of responsibility. In other words, there should be a balance between the authority and responsibility. The good public image secured by one organisation by their social responsiveness encourages other organizations in the neighbourhood or in the professional group to adapt themselves to achieve their social responsiveness. The atmosphere of social responsiveness encourages co-operative attitude between groups of companies. One company can advise or solve social problems that other organizations could not solve. Companies can better address the grievances of its employees and create employment opportunities for the unemployed. A company with its "ear to the ground" through regular stakeholder dialogue is in a better position to anticipate and respond to regulatory, economic, social and environmental changes that may occur. Financial institutions are increasingly incorporating social and environmental criteria while assessing their projects. When making decisions about where to place their money, investors are looking for indicators of effective CSR management. In a number of jurisdictions, governments have expedited approval processes for firms that have undertaken social and environmental activities beyond those required by regulation.