The corporate sustainability movement is now termed Corporate Social Responsibility (CSR) and it attempts to apply sustainability to guide the behavior of business with respect to both society and the environment as well as its responsibility to stockholders. In this new model corporations value their success not solely based on its financial bottom-line, but also on their environmental and social performance. For example, starbucks corporations CSR strategy is,”Our commitment to being a deeply responsible company contributing positively to our communities and environment is so important to Starbucks that it’s one of the six guiding principles of our mission statement. We work together on a daily basis with partners (employees), suppliers, farmers and others to help create a more sustainable approach to high-quality coffee production, to help build stronger local communities, to minimize our environmental footprint, to create a great workplace, to promote diversity and to be responsive to our customers’ health and wellness needs.” This statement is indicative of the comprehensive approach that companies applying the CSR framework take when approaching their responsibilities beyond financial performance. Companies engaged in the CSR framework accrue significant benefits such as a better brand identity, lower levels of regulatory scrutiny, reduced liability, a better reputation among prospective employees, and a far greater probability of gaining a ‘license to operate’ in communities where they propose to establish operations.
Corporate social responsibility(CSR) and Corporate financial performance (CFP) have both positive and negative effects. A positive relationship between CSR and CFP, suggesting that being socially responsible improves profitability. If CSR has a positive effect on CFP, it is also likely that socially responsible investments have a positive rather than a negative effect on shareholder value meaning that CSR is also favourable for the shareholders and a negative relationship between CSR and CFP does not imply the complete abandonment of socially responsible corporate action. The relationship between Corporate social responsibility and corporate financial responsibility is U-shaped. Such as companies with low CSR performance have high CFP, companies with moderate CSR performance have lower CFP, whereas companies with high CSR performance have the highest CFP. This means that mediocre CSR is related to the highest financial performance whereas low and high CSR are related to lower financial performance. Innovative financial advisors pvt. ltd. (Fiinovation) can handle CSR and CFP very effectively. ESG, society, environment, productivity, investment, costs, regulation, revenue strategies are important for handling CFP. These following strategies are helpful to balance CSR and CFP. Every Fiinovation project is analyzed in the Proposal Research & Design Laboratory. Fiinovation's unique in-house laboratory gives a competitive edge, and emphasizes scientific and rational research tools to develop effective and result-oriented initiatives. CEO fiinovation and Chairman - Centre for CSR & Sustainability Excellence, Dr Soumitro Chakraborty believes “ If you don't know where you have started from, you won't know how far you've come...”
Fiinovation practice areas such as health, education, environment, livelihood, and skills all are performed under the expertise solutions. Fiinovation holds expertise in the following practices are Initiative Implementation, Initiative Design & Management for Corporations & SME's, Monitoring & Evaluation, CSR-CSO partnership, Impact Assessment, Development Communications, Social Return on Investment. You can see more details on Fiinovation client login, where all details are provided.
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