Answer the following: Why CSR at all?

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. CSR is important because of following reasons- CSR creates a favourable public image, which attracts customers. Organizations that perform well with regard to CSR can build reputation. Brand equity, is based on values such as trust, credibility, reliability, quality and consistency. CSR activities 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 which is proud of its company. Society gains through better employment opportunities, while the organisation benefits from a better community, which are the main source of its workforce and the consumer of its products. 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. 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 given to organisations and responsibility towards the society. The good public image secured by one organisation by their social responsiveness encourages other organizations in the neighborhood 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. Companies can better address the grievances of its employees and create employment opportunities for the unemployed. In a number of jurisdictions, Governments have expedited approval processes for firms that have undertaken social and environmental activities beyond those required by regulation. In India, Section 135 of the Companies Act, 2013 has provided for mandatory Corporate Social Responsibility to certain class of companies.