Journal of Hotel and Business Management
Open Access

Types of Corporate Social Responsibility and Practice of Business

Caitilyn Allen^{* *}Correspondence: Caitilyn Allen, Department of Hotel & Business Management, Jamia Millia Islamia University, Jamia Nagar, Okhla, New Delhi, India, Email:

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Description

Corporate social responsibility is a management idea that encourages companies to take social and environmental concerns into account in their day-to-day operations and interactions with stakeholders. In general, CSR refers to an organization's efforts to strike a balance between its commitments to economic, environmental, and social goals while also fulfilling the expectations of stakeholders and shareholders (sometimes known as the "Triple-Bottom-Line Approach"). In this sense, it's important to draw a distinction between CSR and philanthropy, sponsorships, or charity giving, the latter of which can be seen as a concept for strategic corporate management. Even if the latter can also significantly reduce poverty and will directly improve a company's reputation and brand, the concept of CSR unquestionably extends beyond those things.

Approaches that are appropriate for each of these firms' requirements and capabilities while not negatively affecting their financial sustainability are necessary to encourage the adoption of CSR among SMEs. The Triple Bottom Line (TBL) Approach, which has been successful in assisting SMEs in developing countries to fulfil social and environmental requirements without compromising their competitiveness, served as the foundation for UNIDO's CSR programme. The TBL approach serves as a framework for evaluating and reporting company performance in relation to its effects on the economy, society, and environment. By giving private businesses a broader range of working goals than merely profit, it aims to link them with the goal of sustainable global development.

It is believed that in order for an organisation to be sustainable, it must be financially stable, reduce (or, preferably, completely eradicate) its adverse environmental effects, and behave in accordance with society norms.

Types of corporate social responsibility

Many businesses concentrate on four main CSR categories because they understand how important socially conscious actions are to their stakeholders, employees, and customers.

Environmental efforts

The environment is one of CSR's main priorities. No matter how big they are, businesses have significant carbon footprints. Any actions a business can take to lessen its environmental impact are viewed favourably by both the business and society.

Philanthropy

Businesses can engage in social responsibility by supporting charitable organisations and social issues by providing funds, goods, or services. However, even as a tiny business, our efforts can make a difference. Larger corporations typically have plenty of resources that can benefit charities and regional community projects. Contact the organisation if we have a specific charity or initiative in mind. Inquire about their particular need and whether a gift of cash, company's products, or the time would be most beneficial to them.

Ethical labor practices

Employers who treat staff members fairly and ethically are exhibiting CSR. This is especially true for companies that conduct business abroad nations where the labour regulations differ from those in the United States.

Volunteering

Volunteering time (and the time of workers) to local organisations or participating in community activities speaks volumes about the company's integrity. By doing good deeds without expecting payment, our organisation demonstrates its interest (and support) for specific issues and societal causes.

Practice of business model

A well-executed CSR concept can provide a number of competitive advantages, including improved access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, an efficient human resource base, improved brand image and reputation, increased customer loyalty, and improved decision-making and risk management processes.

Conclusion

The business will undoubtedly gain more credibility with both present and potential investors if we can demonstrate a welldeveloped CSR programme and efforts. Investors are playing an increasingly important role as essential stakeholders in corporate social responsibility, according to CECP's authoritative 2021 Giving in Numbers report. Nearly 80% of the companies who responded to the study were willing to share information and take into account their viewpoints on sustainability. Investors are holding companies accountable for their social responsibility in the same way that consumers are. A company that takes CSR seriously also conveys to partners and investors that it is interested in both short-term and long-term gain.

Environmental, Social, and Governance (ESG) indicators, which assist external analysts in quantifying the company's social initiatives and are increasingly important for investors, work hand in hand with CSR.