Varying by the firms to minimize intrusive public

Varying types of Corporate Social Responsibility
adopted by companies-

Corporate
social responsibility (CSR) has remained in debate over the last decade and
resulted in evolving CSR definitions, as the traditional form of CSR has been failing
to deliver, for both companies and society.

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For
the longest, companies have been employing traditional Corporate Philanthropy as an act for CSR to bring about a social
change. Philanthropy is defined as charitable actions by applying corporate
resources for ”doing good” that could include donations, community programs or
political lobbying. These philanthropic activities are neither associated to the
firm’s immediate business nor generate any direct benefits for the firm. It is
an indirect way that is employed by the firms to minimize intrusive public
policy, and improve the reputation of the firm. 
A corporate ‘philanthropist’ acts like a venture capitalist in the
not-for-profit sector; The corporate may invest their time and knowledge, but
most often limited to financial support.

With
the basic form of philanthropy being in contention, firms needed a new approach
to engage with the external environment to manage the image of the company. Many
firms now employ CSR Integration actively
wherein businesses are engaged with the external environment by combining and
aligning social responsibility towards its customers and local community, and
their responsibility of core business operations towards generating returns for
its shareholders. Such CSR integration activities include a wide range of activities;
such as ensuring responsibility towards customers by selling high quality
products and continuous investment in R, product design, and responsibility
towards community through applying measures in the supply chain, embracing environmentally
benign practices and policies. These activities are expected to benefit the
corporate’s reputation, result in cost-savings, manage risk and anticipation of
lawsuits. If a business can turn such CSR integration activities into profit
centers, then the company deepens its engagement, stays strong during hard
economic times, and has a cyclical positive impact upon its own business—hence gives
more. Though an indirect form, such integrated CSR programs are based on shared
value creation wherein the company is investing and not just giving charity,
thereby likely to return business benefits such as improved morale, increased
staff retention, status as an employer of choice, attracting new business, and
differentiation from competitors.

Another
form of CSR activity that has evolved in recent time is CSR Innovation where the business is able to use CSR as a source of
business innovations. This is focused on the ‘base-of-the-pyramid’ (BOP)
approach that seeks to solve problems of socially disadvantaged groups within a
society or uses environmental or social problem, while simultaneously creating
new business, develop new products or at least lucrative business opportunities
for companies1.
CSR innovation creates a win-win condition, distinguishing itself from
philanthropy but less obvious with respect to the CSR integration, as both CSR
integration and CSR innovation can act as profit centers. While CSR innovation
looks to create new business aiming at reducing social or environmental
problems, CSR integration is concerned about conducting existing business in a
responsible manner.

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