The primary focus of any organization is to maximize profits. This profitability is achieved through economic strategies in the market. The stakeholders and the organization share a relation which is developed by governance, strategies and profitability.
Corporate responsibility is a core focus these days which includes social obligations of the organization. There is immense realization that development cannot be centred only on economic paradigms. It has to be backed by social responsibilities with involvement of state bodies, public sector units and community welfare initiatives. Economic development now needs a strong cohesion of social and environmental sustainability.
Good corporate governance, corporate sustainability & corporate social responsibility are interlinked in today’s corporate scenario.
In today’s times, any corporate has to comply standards which achieve economic, environmental and social essentials. These help achieve expectations of the organizational as well as social stakeholders of the company.
A company with sound corporate governance culture usually builds foundations to further achieve social goals or responsibility. Good governance practices helps built culture of CSR & corporate sustainability.
- The vision statements of organization are now based on corporate responsibility and sustainability.
- Businesses are now approached with two core principles of sustainability & responsibility.
If we go back in times, companies in 1950s & 60s who then adopted policies of sustainability & responsibility are successful business houses today.
Corporate responsibility goals backed by UN initiatives i.e. Global Compact & the Millennium Goals cover following areas of good governance:
- Human Rights
- Labour Standards
- Responsibility towards Environment
- Healthcare
- Anti-corruption
- Economic development with responsibility
This movement of sustainability & responsibility is driven by investors, consumers, government, public bodies & community welfare organization.
The identity of any organization today is defined collectively by CSR, corporate sustainability and corporate governance.
The multi dimensional approach in corporate responsibility are the 4 CRs.
- Corporate Competitiveness
- Corporate governance
- CSR
- Corporate Sustainability
Financial Literacy is an important aspect of corporate social responsibility initiated by Reserve Bank of India through a scheme for setting up of Financial Literacy and Credit Counseling (FLCC) centres by the banks & financial institutions. As per Reserve Bank of India, financial education & literacy is to familiarise and make understand citizens financial products, it’s benefits, risks involved. The end result through these literacy initiatives are to make informed financial decisions by everyone. Making each individual able to know, monitor and ensure economic well being of one self, their families & their organisations they are involved in.
There is a greater need of financial literacy in India as larger section of the population have no adequate knowledge as regards finances are concerned. Major section of the population is deprived of formal financial education. Hence, these literacy initiatives are of immense value.
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