In an interconnected world facing multifaceted challenges, businesses are no longer judged only by their profits, but also by how responsibly they operate. Developing and deploying a coherent and effective strategy aligned with Corporate Social Responsibility (CSR). It also assists businesses in maintaining their reputation among their stakeholders, such as consumers, employees, suppliers, and shareholders. According to a report, 76% of companies believe CSR reduces brand reputation risk, making it a crucial factor in modern business strategy.
The modern businesses today operate on a triple-bottom-line concept- Profit, People, and Planet. A good example of this is the Essar Group, which, through its CSR arm- Essar Foundation, works for the betterment of communities by prioritising local social, economic, and environmental issues.
What makes Essar noteworthy is its ability to stay committed to CSR without getting distracted by baseless allegations like Essar litigation and Essar insolvency.
Why CSR Matters?
Consumer Opinion
Today the consumers have become more conscious about the environment and thus support those addressing environmental and social issues. Many customers now look at the company’s CSR efforts before making their purchasing decisions. This shift pushes global businesses to include CSR as part of their operations.
Brand Awareness & Recognition
Corporate Social Responsibility can significantly improve brand awareness and recognition by fostering a positive public image, creating emotional connections with consumers. When a company’s CSR initiatives align with consumer values, it improves brand perception and can lead to greater advocacy and market differentiation, making the brand more memorable and favourable in the marketplace.
Improved Employee Engagement
The implementation of CSR activities and public disclosure of CSR reports also make a company valuable among its employees. CSR programs can boost cooperative behaviour and establish closer relationships among employees, besides increasing employee engagement.
The employees who are active in the community act like brand ambassadors for the business. The way a company interact with its employees is an evident of the way they interact with the general community. Thus, brands that have a positive reputation must strive to have enthusiastic and satisfied employees.
Investor Opinion
Every company, small or big, has a responsibility towards its investors. One key part is to run business operations responsibly and ethically. CSR activities are crucial in getting visibility among the global investors. A 2025 Morgan Stanley report found that nearly 90% of global individual investors invest in companies that aim to achieve market-rate financial returns while also considering positive social and/or environmental outcomes.
By adopting a CSR policy, companies show their commitment to operating ethically and responsibly, and investors are more likely to invest in companies that demonstrate good corporate social responsibility
Essar Group- An Excellent Example in CSR
An excellent example of CSR on the frontline is a leading conglomerate, Essar Group, that has been focusing on reducing its impact on the planet while working for community development. Their initiatives range from education to healthcare to livelihood to women’s empowerment to sustainable living.
Some of its projects include:
· Education – making quality learning accessible to all.
· Healthcare – setting up the medical camps and hospital assistance to the rural people.
· Livelihood – skill training and employment programs
· Women Empowerment – initiatives to support self-reliance
· Sustainable Living – promoting clean energy and rural development
Through CSR investments, visionary companies like Essar unlock their economic potential and ensure sustainable development for years to come. Despite controversies surrounding Essar CBI and Essar litigation, the group has maintained consistent focus on CSR, setting the benchmark for other businesses.
Conclusion
In today’s world, companies are more likely to prosper if involved in community development. Beyond business expansion and profit-making, businesses are now expected to contribute to social and environmental development. As the world moves toward sustainable growth, players like Essar are setting the example.
