The basic objective of every business enterprise is to develop, produce and supply goods and services to customers in such a way so as to make profits. Profit is not only the basic prerequisite for every business, but it is also a foundation for prosperity in society. Only profitable companies are sustainable in the long term and capable of creating goods, services, and work opportunities. Profitability, which results only when the customers are prepared to pay more for goods and services than it costs to produce them, is essential for the survival and growth of every business enterprise.
Modern day business enterprises do also primarily focus on earning sound profits in order to sustain in the dynamic environment and acute competition surrounding them, but at the same time they have to ensure their part in the societal betterment also. Business in contemporary times is not merely a process of manufacturing goods and providing services involving financial and industrial aspects, but it involves something beyond these aspects- the social responsibilities. Apart from making profits, business enterprises have to contribute their part for the betterment of the environment and society in which they exist. Business enterprises nowadays are dedicating themselves to serve the societal and environmental challenges and issues. This is technically known as the Corporate Social Responsibility or CSR. CSR is also called Corporate Conscience, Corporate Citizenship or Social Performance.
According to a recent survey by Mumbai based online organization karmayog.com, CSR still has not taken off in India. The research revealed that nearly half of the top companies of India do nothing in way of CSR. In 2010, as a part of the amendment to the Companies Bill, the Ministry of Corporate Affairs had announced that CSR spends will be made mandatory as voluntary CSR spends are not working. But due to sharp criticism from the India Inc this amendment could not be enacted.
When Muhammad Yunus, 2006 Nobel Peace Prize winner and the founder of Grameen Bank, was contacted by the Nobel Foundation for the customary winner interview, he remarked, "...poverty is an artificial creation. It doesn't belong to human civilisation, and we can change that, we can make people come out of poverty. The only thing we have to do is to redesign our institutions and policies."
In a conflict zone like Kashmir, it becomes mandatory for the business enterprises to deliver CSR. There are lakhs of orphans, thousands of widows and half-widows, thousands of families who lost their kith and kin to the ongoing turmoil, who are in dire need for the immediate attention of the society. As a part of their CSR, business community in Kashmir should invest for the welfare of these people whom the fate has bitten painfully. Business community can contribute tremendously for the economic welfare of these families. They can initiate CSR programmes for the health and education of the families of the victims of conflict. Though there are certain corporate houses in Kashmir which have started CSR programmes like J&K Bank, Rahim Motors, Trumboo Cement Industries, and others, but whatever the CSR activities are happening, they are just centred around environment, sports, drug abuse, etc. Whereas in a conflict zone, we primarily need to take care of the families affected due to the conflict- their health, education and economic welfare.
Enterprise in the present world cannot be successful without taking into account the social responsibility. CSR has been a vital component for any organization to have perpetual success and to create brand. Customers want to buy product from a trusted brand, employees want to work for the company which respects them, NGO’s want to work with a company which works with the same vision as theirs for the benefit of the people.
As said by Peter Drucker “The 21st century will be the century of the social sector organization. The more economy, money, and information become global, the more community will matter.”

 (Raies Ul Haq Ahmad Sikander is a student of BBA 3rd year at The Islamia College of Science & Commerce. Feedback at facebook.com/the.corporate)

Lastupdate on : Tue, 15 Nov 2011 21:30:00 Makkah time
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