Business Model: Corporate Social Responsibility

Corporate social responsibility (CSR) is the best business model for success in the mixed economies like India. The role of corporate is not only to earn profit but also to serve the society through its self regulated –corporate social responsibility. It has been part of business over many decades.

The contribution through the CSR could bring many changes in the society, and could prove bliss for the poor people. The high rise buildings, highly skilled staff, and corporate cultures too think about the society, it is not that they have been only earning profit.

There are many multi-national companies run major CSR programs and have been successful too in their bid for the improvement in the society and addressing social evil.

No the article is not aimed to praise the corporate but to encourage their active participation in CSR. For a better society, there is need of better business model and success stories.

These are possible if the companies would be social accountable towards the development of the society. Many do follow the CSR as the best business model, why not, if you want to do business in a society and the company or business not a part of the society itself.

The social, cultural activities from a corporate would have positive impact on its human resources, that those are associated with the policies would consider their significance and role in the development.

The CSR is not only applicable for the external affairs in terms of development, but this will help to have a conducing and strong work environment inside too.

Here are the some of the major companies started the CRS:

Renault

Renault has long been aware of its own social responsibility to its employees, its customers and the planet, and has actively taken this responsibility for many years. The creation of the Corporate Social Responsibility Department (DRSE) in May 2009 represents the continuation of this policy.

Indian Oil

At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation’s objectives in this key performance area are enshrined in its Mission statement: "…to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

Cognizant

At Cognizant, we know that we cannot prepare any business — our clients’ or our own — for the future of work without also considering the future of our society and our planet. It is our responsibility to apply our collective knowledge, talent and energies to the challenges we all face in our workplace, our communities and our environment.

MphasiS

Corporate Social Responsibility (CSR) at MphasiS strives to build bridges between: the company and the communities we live in; our employees and social issues and our skills and society's needs

Bharat Petroleum Corporation Limited

BPCL mentioned “We are a Model Corporate Entity with Social Responsibility. Build a Powerful Partnership with Society for ‘Sustainable Development’”

Leela Palaces, Hotels and Resorts

The Leela Palaces, Hotels and Resorts is committed towards prevention of pollution and continual improvement in environmental performance by controlling the impact of activities, products and services on the Environment.

There are many companies, corporate and industries having best CSR policies in practice for the development of the society. And they have been contributing much more in form of taxes also. CSR has been the best business model to follow.

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Best Business Model is Must for Success

Business model is everything that makes a business successful. The outline about business mode, we know is the way a company or organisation enters into market and earns revenue. In other words, a plan outlay or sketch of business to reach its valuable customers to make money.

investopedia.com defines business model as “ the plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs”.

Doing a business and make profit out of it, requires through research and planning and its execution. A consistent approach towards the goal setting is one of the major components of business model. Creating a business involves a lot of time and knowledge, consider organizational leadership masters programs to better help you prepare for your next business venture.

While planning for a business, the core business model has to be drawn. Entrepreneurs need to cross examine their business model before venturing into the world of business.

Sometimes, the business model looks good but fails due to misjudging the area or locality. For example, a very lavish hotel in semi-urban area may be or may not be a good business model.

If it is a failure business model, then it would be case that the lifestyle was not good fit to have such set there or lack of opulence customers in the locality.

It is a case of wrong judgement about the target customers or somewhere the business model lacked detailed research about its customers for that locality.

On the other hand, the same set up in metropolitan cities could fetch more and more income, as there would more targeted customers.

While planning for a business model, businessmen should examine all the components of the business, customers, locality, approach and campaign to reach customers.

Before making the profit analysing in hype, it is recommended to have cross check the business model with ground realities, and that can make a business successful.

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