CSR stands for “corporate social responsibility,” which means the responsibility a company has to not only to its shareholders, but also to its employees, local community, customers, the environment and the world in general. Because many companies (and people) view CSR as an expense or a burden, it’s important to realize that CSR can also help your business grow.
When people think of CSR, they often think of a company’s social responsibility programs and initiatives. However, these programs are only a small part of the larger CSR picture. As the name implies, “Corporate Social Responsibility” deals with the responsibility of corporations towards the society in which they operate.
Using the Business Model Canvas, let’s look at how CSR fits into a business. The first step in the process is to define the internal processes of your company. Step two involves defining the company’s external relationships with its customers, suppliers, competitors, and other stakeholders. Step three involves defining the company’s external environment, including the various forces that impact its growth and performance.
CSR: History And Origin Of CSR (Corporate Social Responsibility)
Corporate Social Responsibility (CSR) is the concept that businesses exist and should be run in a socially and environmentally responsible manner. CSR attempts to promote a notion of sustainable development in which businesses and individuals are interdependent with society.
The society that a business is embedded in and the willingness of that society to accept corporate initiatives is a vital influencing factor in the development of a CSR strategy.
Today, the CSR movement has become mainstream and a good corporate citizenship has become a solid business strategy and a marketing advantage. CSR has also been more recently referred as Corporate Citizenship and in some cases it is called Corporate Citizenship Responsibility.
The term CSR was first used in 1973; since then, many organizations, including the Business for Social Responsibility, the Global Reporting Initiative, the UN Global Compact, and the World Business Council for Sustainable Development have published definitions and guidelines for CSR implementation. CSR – History And Origin Of CSR (Corporate Social Responsibility)
Example of Corporate Social Responsibility
Corporate Social Responsibility (CSR) is the concept of businesses consciously deciding to use business as a force for good, and working for the common good of society.
It is a broad concept that can include anything from charitable donations to ethical trade, and from environmental protection to ensuring that a company’s policies do not harm the local community.
Many companies these days are doing some form of corporate social responsibility (CSR), also known as corporate citizenship. Some of this involves working to improve the environment or to increase access to clean water, but it can also include philanthropic endeavors and supporting a variety of other causes.
The most common way of doing CSR is to donate money to charity. Businesses sometimes donate a proportion of their profits to good causes in the area where they operate, or to help spread the company’s image to a wider market.
There are many ways for companies to develop CSR initiatives that align with their interests, including investing in local charitable organizations, funding educational programs, and setting up volunteer opportunities for workers.
It can include anything from environmental initiatives to employee volunteer programs to community outreach. It can be the cornerstone of a company’s social and environmental responsibility program, which is designed to ensure that a company can remain viable in the long-run.
The most successful CSR programs incorporate a diverse set of activities, dubbed the 3D approach: impact (measurable outcomes), delivery (how success is measured) and dedication (long-term effort).
Corporate Social Responsibility in a Business
Some people might argue that a corporation has no responsibility to do anything other than make a healthy profit for its shareholders. However, there is a growing body of evidence that sustainable business practices—which include activities such as developing renewable energy sources and conserving water—are not only the right thing to do, they may also be good for business.
One recent study found that companies whose sustainability goals are linked to their core values enjoy an average return on equity of 17 percent, compared with 12 percent for companies that don’t.
Businesses have a responsibility to their employees, to consumers, to the environment, to the community… and to investors.
Part of being socially responsible, then, is ensuring that the actions of your business align with your values. For example, if you value sustainability, you may want to think about alternative energy sources, green technology, and ways to minimize pollution.
However, you also have to balance that with the bottom line and the needs of your stakeholders. You can’t, for instance, eliminate all the benefits that oil brings to the modern world.
Businesses have been forced to make the shift from traditional marketing to corporate social responsibility (CSR) because of the competitive nature of the business world. When companies are competing against each other, they are also competing for the loyalty of consumers.
If consumers feel that a company is doing something that is benefiting society as a whole, they are more likely to purchase the products that company offers. When companies are not socially responsible in the way they conduct business, they can have negative effects on the community.
These negative effects include the lack of workers that are qualified to work for the company, causing the company to hire workers that are not trained. This can also cause the company to hire illegal immigrants. The company may also not follow laws and regulations.
The big question is whether the private sector should take on a larger role in solving social problems. The answer is that companies do have an obligation to be socially responsible, but also that there is a role for the government to play. The private sector can make a big difference in areas like poverty and education, and it’s important that it does. But in order to be effective, companies should work with the government to set clear goals, so that the public can hold them accountable.
CSR is a positive step in the right direction. It involves companies working with each other to protect the environment. It also means companies working with their communities to improve the standard of living. In the long run, this should lead to better products and services. So, if you’re interested in doing business responsibly, you might want to learn about corporate social responsibility.