CSR as consumer social responsibility

Mar 30, 2010, 02.51am IST

Policy

CSR as consumer social responsibility Mar 30, 2010, 02.51am IST By Niraj Kumar

Almost taking on the much-hyped issue of corporate social responsibility (CSR) head-on, a curious management student broached the topic in a CSR class and asked, "Is the CSR not too idealistic and enforcing? Why can't corporations make it part of their business strategy?" An impromptu debate followed. "The consumers should be made conscious to use only socially-desirable products and services," one student said. "People should prefer companies having better track-record of socially-desirable activities and business," said another. The questions were clearly vital in the present circumstances and make a case for bottom-up implementation of CSR. Consumers are certainly powerful and central to survival of a business. Though it does not tend to undermine the importance of other stakeholders, consensus nevertheless is emerging that their interest can only be protected if the behaviour of companies is consumer-driven. Corporations often project themselves as socially-responsible. The civil society, however, seems far too convinced and often assails the claims of corporations as a sham. This suggests that there is a slip between the cup and the lip, which is either not visible or is being ignored. It also warrants that corporations must introspect and live up to the expectations of the consumers to thrive in the emerging competitive market. Decisions in business organisations have always veered round 'maximum return on minimum investments'. Being part of one of country's premier management institutions, one notices that that most future managers prefer to join companies that offer them higher salaries and a profile where they would not be expected to soil their hands and mind working with people at the bottom of pyramid. No doubt there are socially-responsible corporations whose share values have gone up. But this is also a fact that shareholders wait for 'high dividend' from companies and not reports on their 'socially-desirable performances'.

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Mar 30, 2010, 02.51am IST A close look at the prevailing scenario brings home the hard fact that consumers too are no less guilty for the undesirable practices by corporations. For, they have failed to resist the temptation of using poor standard products and services without considering their actual price

and the after-effects. They ignore or pretend to be unaware of the ultimate price they pay. Regardless of their socio-economic class, they are always in a hurry to possess and use everything at minimum cost in minimum time. The proliferation of cheap Chinese version of everything in the market speaks volumes of the consumers' mindset. Also, no one seems bothered whether the product is 'socially-desirable'. Now, the issue is: can consumers really push corporations towards CSR? The answer is a big 'yes', but only when they begin exercising their freedom of choice in choosing sociallydesirable products. Once they start doing this, the impact on corporations would be far and wide, forcing them to invest in products and services that are socially-beneficial and environment-friendly. The effect will be evident in the case of branded products as well. It is true, consumption pattern and decision-making processes of consumers are not easy to change as this depends on the availability of options and information about products. Moreover, consumers are always in a hurry and they do not have the wherewithal to be highly involved in every purchase. The answer lies in information-generation, processing, dissemination and education of consumers.

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Source:

http://articles.economictimes.indiatimes.com/2010-03-30/news/27597529_1_social-

responsibility-socially-responsible-csr

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