DOES IT REALLY WORTH IT TO CONSIDER CSRs WHILE PLANNING TAX?
Corporate Social Responsibility (CSR) is believed to be the enterprise’s responsibility for the societal impacts they create. It is very well accepted in business. Their activities range from building schools, boreholes, and hospitals for a community. They sometimes go as far as contributing to scholarship scheme. They can get involved in activities that can take a large portion of company's income and can as well get involved in minor charitable activities.
Many organizations don’t really consider the implication CSR is going to have on their tax return before going into it. It is wise to evaluate it and check very well before taking that decision. While some do so because they don’t know the rules guiding the CSR, some do because they have little or no knowledge about how it works.
Benefits of CSR
There are a lot of benefits associated with CSRs. In as much as CSR is loaded with benefits, it is also good to check those ones approved by the government before delving into it. Below is a list of the benefits:
Helping to win new businesses: They build businesses from the scratch and win them over even when it seems no hope again for such business.
Helps to increase and see that customers are retained: Through their activities, they tend to increase customers and they don’t stop at the level of increasing customers, rather they ensure that those customers are retained.
Develop and improve relationships: They ensure that strong relationship is established between customers, suppliers, and networks. This is a kind of relationship that helps to improve profitability in business.
Increases the reputation of businesses: It helps businesses that are almost losing their reputation and standing to regain it again. This helps their feet to be strong on the ground again as that would make old customers to return back to them.
Gives room for investment and funding: They give opportunities for business that have access to funding and further investment. Where funding is not obtainable, with CSR, it becomes easy.
Helps to improve great publicity and media awareness: Through awareness created people get to know more about the business and it increases business opportunities. Even though CSR has a good objective but many people are now trying to make it business discipline which ought not to be. For more information, please click on this link shareholder protection.
Things To Follow To Make CSR More Effective
Below are listed steps your company can follow in order to achieve an effective CSR:
State Your Intention Clearly: Study and check what they actually need and from the list select the one that matches your objective and state it clearly to them so they will know that is the one you are working on.
Consult Your Customers: Where you are finding it difficult to know the activity to embark on, simply consult your customers. You can ask your fans on Facebook to vote on the one you can embark on.
Involve Press: Send a press release and get media houses involved so that they will help in covering the event.