How companies can align CSR with brand and profit from good image

GN Bureau | August 31, 2015



The amount is going to be many times more than some of the states’ public debt and equivalent to many big welfare schemes of the government. And there is a real danger of Rs 25,000 crore being spent on non-priority sectors.

The Companies Act, 2013 was amended to bring CSR (corporate social responsibility) under section 135 of the act from April 1 last year. Companies falling in the ambit of the new rules were mandated to spend two percent of their net profit (average of last three years) on CSR activities. It is estimated that nearly Rs 25,000 crore could be spent by companies in CSR activities in the first year (2014-15) itself. Nearly 14,000 to 16,000 companies are likely to come under the ambit of the CSR legislation.

Earlier, the companies, both public and private, used to spend on activities that they considered as social commitment. But with the law there is a definite list of activities that the government considers as coming under the CSR.

Private companies would like to spend their budget for CSR on activities that will benefit their brand and the image of the company.

But at industry level there are very few who understand how to align CSR with the brand. However, those who have managed to bring brand and CSR together enjoy great levels of preference, loyalty, word of mouth recommendations and enhanced marketing effectiveness leading to higher profitability due to consumers' willingness to engage with them.

The companies should ask about the strategic direction of CSR? From the area of competence, what's the best can be done for society? A change in the rules should have led to some strategic questions on CSR in companies. However, various corporate are not asking relevant questions. 

The CSR should ideally be aligned with the business. This means using ingenuity to serve both society and business needs at the same time.

Companies that do CSR are seen as having character and strong values. Studies indicate that consumers trust brands that do CSR more than brands that don't.

Comments

 

Other News

Take action, NSUI tells police over varsity clash

The National Students Union of India (NSUI) on Thursday sought action against those who had assaulted students and teachers of Delhi university at a protest march on Wednesday.` “Our sole motive is to compel the police to take some strict actions against the lawbreakers who brutally manhand

BMC polls throw up fractured mandate

 It’s a hung verdict in the elections to the BrihanMumbai Municipal Corporation, which is India’s richest civic body. Shiv Sena bagged 84 seats closely followed by BJP that won 81 seats. Congress with only 31 seats  performed badly as compared to  52 seats  that it

A poem that gives a perspective on Indian Muslims

A beautiful poem on modern Indian Muslims has caught the imagination of the social media users. “Hindustani Musalmaan” by Hussain Haidry has gone viral on the net. Not just for being crisp, but also for conveying what it means to be a Muslim in this country. There

Demonetisation posed a new challenge to growth: IMF

The Indian economy has recorded strong growth in recent years, helped by a large terms of trade gain, positive policy actions including implementation of key structural reforms, a return to normal monsoon rainfall, and reduced external vulnerabilities, said the International Monetary  Fund (IMF).

The Nirbhaya of Naliya: a gang-rape in Gujarat involving BJP leaders

  The “Forum of Concerned Citizens for Naliya Incident” sent a fact-finding team to Kutch on February 20. The members of the team were Dineshbhai Sanghvi, Meenakshi Joshi, Balendra Vaghela, Dr Jharna Pathak and advocate Shabana Mansuri. Based on their report, the Forum ha

A blotch of saffron on Indian universities

University of Hyderabad, Jawaharlal Nehru University and now University of Delhi…the free space for discourse is steadily being squeezed out of universities in India as the Rashtriya Swayamsevak Sangh (RSS) backed Akhil Bharatiya Vidyarthi Parishad (ABVP) imposes its will and forcibly blocks out alt

Video

यूपी चुनाव: सपा-बसपा समर्थकों के बीच हिंसा
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter