Corporate social responsibility or corporate charity donations have become an important concept in both the corporate world and the social development work enabling several NGOs to undertake meaningful programs to help the not so fortunate. There are many successful examples of how corporates have partnered with NGOs and Foundations to make a difference on the ground.
What is Corporate Social Responsibility?
Corporate social responsibility refers to a concept where companies contribute to the development of communities they operate in. For many decades most businesses were focussed on only making profits. This began to change a few years ago with large companies realising that they also have a responsibility towards society and the community. It is a way for a company to bring balance in it's profitability as well as the community's environmental, social and economic aspects. This can be in the form of financial donations, contributing expertise and skills in to help charities work more efficiently, promoting diversity and inclusion, promoting economic and environment sustainability.
CSR needs to be imbedded in the company's ethics and culture. The key ways of ensuring that a CSR partnership is successful are:
Pick a Cause that aligns with the company's goals:
It is important that the cause one supports aligns with the overall ethos and principles of the company and ties into the overall business strategy. Sometimes, companies get drawn to organisations that are big and have a name but these may not align to the overall goals of the company. In the long run such partnerships do not lead to a fruitful outcome. The cause can be supporting environment sustainability, improving the health and development of a region, the list is endless.
Shortlist The NGOs:
This is the next critical step. Once the cause has been aligned, it is important to shortlist the organisations working in that particular area. Thus, if a corporate wants to contribute towards a donation for heart surgery, the next logical step would be to enlist all the reputed and credible organisations working in the area and on the geographical area of interest. This would include heart surgeries both for adults and children. One then needs to do a proper due diligence before shortlisting a potential partner from the list. It is vital to undertake a complete background check to ensure that the activities and processes of the potential partner are credible and transparent.
Ensure an internal Buy In: It is imperative one understands the needs and expectations of internal employees and other stakeholders to ensure that they too identify with the issue. This includes both senior management executives as well as the larger team and other stakeholders of the company. This is important for the CSR strategy to thrive.
Monitoring and Feedback: Monitoring and feedback are the fundamental pillars of a successful CSR partnership. it is important to ensure that corporate charity donations are being used optimally for the cause that the funds have been dedicated to. Hence measuring, recording and communicating the impact of intervention assumes a critical role for most NGOs and CSR companies. Monitoring and evaluation of programmes immediately throws lights on the effective and optimum utilisation if funds. Impact assessments are a good way of measuring the effect of an intervention.
An effective CSR strategy can benefit both the company and the larger environment. There are many examples where an effective CSR partnership with an organisation has had a larger impact on the society. United Colours of Benetton for example, has been working on societal and environmental goals. Many pharma companies have been supporting donation for heart surgery. An effective CSR strategy creates a positive impact for the company and also helps promote sustainable business practices. in may cases it also helps increase customer loyalty and retention.
Conclusion:
Thus, implementing an effective CSR strategy is good both for the organisation and the community at large. in today's age, where there are multiple developmental challenges, public private partnerships and support from corporates to NGOs is critical to improving important developmental indicators.
