CSR is the process by which an organisation thinks about and evolves its relationship with stakeholders for common goods and demonstrate its commitment in their regard by adoption of appropriate business process and strategies.

CSR is no charity or mere donations but is a way of conducting business, by which corporate entities visibly contribute to social good. Socially responsible companies use CSR to integrate economic, environmental and social objectives with companies operations and growth.

TYPES OF CORPORATE SOCIAL RESPONSIBILITY

1.Philanthropic Responsibility

At the top of the pyramid, occupying the smallest space is Philanthropic Responsibility. Businesses have long been criticized for their carbon footprint, their part in pollution and exploitation of natural resources. To counterbalance these negatives a business stands a responsibility to “give back” to the community they take from.

Philanthropic responsibility include things such as:-

i) Funding educational programs

ii) Supporting health initiatives

iii) Donating to causes

iv) Supporting community beautification projects

2. Environmental Responsibility

Environmental CSR aims to reduce any damaging effects on the environment from operations of business.

 It may focus on:

1. Energy use

2. Water use

3. Waste Management

4. Recycling

5. Emissions

6. Eco-friendly office and business travel policies

Advantages of Environmental CSR

1. Green CSR can reduce business risk

2. Improve reputation

3. Provide opportunities for cost savings

Even the simplest energy efficiency measures can generate savings and make a difference for firm.

3. Legal Responsibility

Legal responsibilities are not only liable to the individuals in the society but also to the businesses in the society. As business is an entity itself, it must also follow laws and rules.

Every business has a responsibility to operate within the boundaries set by the various commissions and agencies at every level of the Government. These rules and regulations are set for maintaining balance and the greater good of the society.

A law-abiding enterprise is a socially responsible enterprise as well. The business is free to do business however it wants but only within the boundaries of regulations of various laws 

Some Laws are as follow:-

1. Labour Law

2. Environmental Law

3. Criminal Law

For example, it’s a business’s duty to pay taxes to the government and keep its account books clean as it helps the government to track the economic state of the company.

4. Economic Responsibility

The first and most important responsibility of a business is to be profitable. It is the foundation and base on which all other responsibilities rest. Without profit, the company would not be able to pay their workers, employees will lose their jobs even before the company starts CSR activities.

Being profitable is the only way for a company to be able to survive long term, and benefit society. Additionally, this also means that it is a company’s duty to produce goods and services that are needed/wanted by the customers, at a reasonable price.

Economic responsibility is an interconnected field that focuses to strike a balance between business, environmental, and philanthropic practices.

Performing this responsibility companies try to find out a solution that can facilitate their business growth and generate profits by benefiting the community and society.