Corporate Social Responsibility in Times of Recession
Sudeshna Datta

Today, companies are stressing on caring and empathy as core values and encourage employees to demonstrate these values not just in on-job situations but also by contributing to the society at large

Showing we care
Businesses across the world have realised that in order to build a sustainable and holistic business model it is very important for them to focus not just on profit maximisation for stakeholders, but also show equal accountability towards fulfilling their responsibility towards the community and the environment. India Inc. has emphasised on the importance of Corporate Social Responsibility from early days and companies like the TATA Group, ITC, Infosys, Wipro, etc. exemplify the initiatives taken in this direction. In fact, the findings of a recent survey revealed that more than 90 per cent of all major organisations surveyed were involved in CSR initiatives.

CSR has moved beyond indulgence in pure philanthropy and has taken a much more strategic role in the overall organisational development. Today, companies are stressing on caring and empathy as core values and encourage employees to demonstrate these values not just in on-job situations but also by contributing to the society at large. The CSR endeavours of corporates can vary - ranging from improving livelihood, education, health & hygiene, environment, women empowerment, rural development to many more. Most of these activities are taken up as internal projects while others are done in association with Government bodies and or NGOs by providing direct financial aid. Corporates also establish separate wings that are dedicated to improving, guiding and inspiring the lives of the underprivileged through a wide range of socio-economic, educational and health initiatives. These foundations provide direct assistance and resources to individuals, families and other charitable organisations.

The need of the hour

The current economic downturn will certainly raise concerns around the budgets for CSR activities and the extent to which companies will be inclined to invest in these initiatives. However, the ones who are smart will not loose focus and continue with their CSR efforts. The simple reason being that good will and transparency are always key for a company to keep thriving, especially so in tough times. Coming across as a company that cares for all its stakeholders and treats them fairly even in difficult times will help gain the trust of people in the long run. The right approach is to come up with more creative ways of implementing cost effective CSR activities rather than pulling back.

At AbsolutData, CSR is a core strategy and employees are all the more upbeat about the various CSR activities taking place in the organisation. The company recently conducted a survey on environmental awareness among the citizens of the major cities in India. This was an AbsolutData funded initiative whose objective was to provide information to various stake-holders in the environmental movement. Other initiatives like blood donation camps, providing funds to various NGOs, promoting "Go Green" concept by organising tree-plantation events, spreading awareness on the effects of Global Warming, etc. are also a regular feature at AbsolutData.

Recession is a time of uncertainty and corporates should try to focus on the long term benefits from CSR activities rather than focusing on immediate cost cutting at the risk of forgoing their responsibilities towards the community.

The author is the EVP & Co-founder, AbsolutData Research & Analytics