Types Of Corporate Social Responsibility

Corporate Social Responsibility is a concept where a company contributes to sustainable development by giving economic, social and environmental benefits for all stakeholders. In a word we can say that CSR is companies concern and commitment to sustainability and development.
According to World business council for sustainable development 2000, CSR is the continuing commitment by business to behave ethically and contribute to sustainable economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.
According to Simpson and Taylor, CSR is additional responsibilities of business to local and wider communities apart from its core responsibility of profit maximization.

Normally first concern of a company is earning profit. It is simple fact that if a company does not earn profit then company won’t last longer. As a result employee of the company loss their job and company never think about taking care of its social responsibilities. CSR can’t be accomplishing until a company is profitable.
Legal Responsibilities: Legal responsibility is one of the most important responsibilities of a company. It is enforced by law. When a company is profitable then company have to ensure to obey all responsibility. According to CSR theory legal responsibilities can range from securities regulation to labor law, environmental law and even criminal law.
Ethical Responsibility: when a company met economic and legal responsibility then they are concern about ethical responsibilities. It is applied by itself because owners of the company know better what the right things and what the best time to apply it. Being environment friendly, fair wages, offering employees better benefit and avoid contract with illegal parties or do business with tyrannical countries could include ethical

At the time of doing CSR if anyone make any mistake then companies or institutions full reputation can be damages. Warren Buffet said that “Its takes twenty years to build reputation and five minutes to ruin it”.
Less Profit: CSR is mandatory for all the companies or financial institutions. When company or institutions doing CSR they expense huge money on that sector. As a result they earn less profit sometimes if affects companies or institutions actual capital.
Benefit:
1. Tax Benefit: when a company expense 20% of their total income or 8 crore which one is lower as CSR activities then they will get 10% tax rebate.
2. Reducing advertising cost: When financial institutions doing CSR at the same time they promote their institutions. As a result advertising cost of these institutions reduces.
3. Increase institution reputation: when financial institutions doing CSR at that time local people will know about these institutions or people will know via media. Then people always take these institutions positively.CSR don’t have direct impact on financial performance but it increase reputation capital.
4. Enhance employee loyalty and retention.
5. Help to finance for new