Can Corporate Social Responsibility Survive the Recession Brunt?

Corporate social responsibility may have become a popular concept in the business world but will it survive the present economic turmoil? Until a year ago, no one would have questioned the possibilities of CSR. But things changed once the financial crisis hit the global economy. Experts are of view that the current economic scenario has led several companies to keep their CSR and sustainability efforts for the future. The focus has shifted from social causes to profit making. However, they feel that even though companies are finding it difficult to keep going green and good work has taken a back seat, CSR should not be removed from the business agenda. The viability of corporate social responsibility goes beyond its acceptance in only good business conditions. It can be a valuable aspect whether the business is running good or bad. Currently, when consumers are becoming aware and demanding more transparency in the information being provided to them, companies cannot afford to lose their commitment to CSR. Many companies believe that tough economic conditions should result in tough decisions and not in losing out on hard earned sustainability credentials. But with everyone busy making profits; it will be a challenge to see how many companies stay committed to making a difference and whether they consider CSR as a business essential or a fringe activity. CSR consultants agree to the fact that recession is affecting sustainability issues but they also feel that a business can save money if the sustainable policies are in place. From saving electricity with low-energy light bulbs to reducing landfill sites with the help of local councils, companies can continue making a difference with minimal investment. These initiatives will require investment in the initial stages but if they are well thought out, any business can reap long term benefits. Economic downturn will have less impact on organizations that understand the importance of developing a sustainable business. Effective CSR events will become an effective tool for them to sail through rough times. The present need for companies is to keep following green ways of doing business and take little steps within their financial constraints.