How Can Artificial Intelligence Revolutionize CSR?


As we know, companies use natural resources to create a product or service which increases the profit of the big corporate houses. Industrial activities pollute the environment by releasing injurious gases/waste in the environment.

Unfortunately, common men of the society have to bear the actual cost of this bad pollution in terms of diseases like Bronchitis, Non-Communicable Diseases, polluted air, and water, etc. but common men do not receive any compensation from the corporate houses in return of these diseases. That is why it was made mandatory for companies all over the world including India (2% of their profits) that they should spend some part of their income on the welfare of affected people or weaker sections of the society. It is called ‘Corporate Social Responsibility’. This term describes positive ways through which multinational companies may affect the society in which they operate. A major problem is that the corporate responsibility debates have been mainly focused on the large MNC’s behavior and their impact on developing countries and emerging markets.

The companies with a good CSR strategy in place have a distinct competitive advantage. Consumers prefer products and services by socially responsible organizations even at a higher price. However, many times the impact created by CSR programs does not reach its potential because of various glitches such as:

  • Inaccuracy in the impact measurement process.
  • Attitude and behavior of the management towards the CSR program.
  • Improper integration of CSR initiatives with business strategies.

The use of Artificial Intelligence (AI) in CSR can improve efficiency and reduce these glitches.

  • AI can understand the business value drivers of a firm as well as its ability to generate positive outcomes for multiple stakeholders. Taking the CSR goals into consideration a smart system can recommend a program strategy and map that can help to configure and optimize a CSR program.
  • AI technology can eliminate or reduce human bias in value measurement and materiality assessment.
  • An AI system can dynamically monitor and track emerging trends and global changes and can provide accurate and multi-dimensional performance measures of a CSR program against global standards.
  • The smart technology can also identify management bias, insincerity, dishonesty, self-serving as well as other management issues and can provide recommendations to tackle them.
  • AI can also detect fraud and improve internal controls.

CSR is a data-based segment to drive social change. However, most CSR professionals witness the challenge of handling excessive data to make a visible social impact. Artificial intelligence (AI), which can monitor data for quality, and transform this vital information into sustainable CSR delivery may be the answer to this problem, after finance and marketing solutions, many companies are also using AI in an integrated and strategic manner to enhance CSR efficiency.

CSR is a data-driven segment for a better social change, considering this fact w.r.t to India, a lot of Non-Governmental Organizations which are in desperate need of a favor from the CSR committee of the MNC’s are quite not influenced with the technology exposure, how can AI help us in reaching out to such organizations?

This article is co-authored by Dr. Raul Villamarin Rodriguez and Mohamed Junaid, Woxsen School of Business