The companies are not only involved in doing business, but they also contribute towards the society through chartiable works. Companies whose total net worth is above 500 crore is required to make contribution towards society as a part of corporate social responsibility. These companies are generally public sector companies or private sector big companies. But, however, big companies are not the only ones who contribute towards social causes, there are small and micro companies. Though they do not require to maintain CSR, but still they contribute towards the society. Here are the things which benefit the companies with their involvement in charity:
Benefits to the Companies Involved in Chartiable Activities
- A Positive Impact: The companies involved in charitable works often leave positive impact on the society. This positive environment creates a goodwill of business in the society and people. The consumers also feels satisfied as a small part of their contribution goes towards good works. So it encourgaes them to continue taking service which in turn strengthens the business.
- Tax Exemption: The companies involved in Chartiable Works and Making Donations gets tax benefits from the Government. This initiative is taken by the Government so that more companies contribute towards charitable works. There are different tax exemptions for charitable works which varies from country to country. In India, the companies involved in chartiable works may get 100% tax exemption which depends upon different criteria under Section 80G of Income Tax Act.
- Branding: The companies doing chartiable works also gets a good branding. Suppose, if a company is organising any chartiable event, program or if sponsored in any event, then its company name and brand logo will be mentioned and highlighted. This will make the company increase its brand identity and awareness among the public.
- Serving the society: As we all take a lot from our society, so we should also contribute our efforts towards improving the society. Doing little charity and helping the needy gives us exemptions, but above all, it is a duty and responsibility. Our small contributions makes difference in improving the society. Through charity, we also get the chance of serving the society and improve it.