Figure 1: Corporate Social Responsibility (Yasin, 2019)
Corporate social
responsibility is a management concept whereby companies integrate social and
environmental concerns in their business operations and interactions with their
stakeholders.
The following
definitions of CSR have been proposed by different authors:
- “How companies manage the business
processes to produce an overall positive impact on society” (Baker, 2004)
- “Continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families, as well as of the local
community and society at large” (World Business Council for Sustainable
Development in Hopkins, 2007)
- Additional responsibilities of businesses to local and wider communities apart from its core responsibility of profit maximization (Simpson and Taylor, 2013)
Let’s
take a look at the key elements of effective CSR programs:
1. Environmental
concerns
A
majority of companies have large carbon footprints, so any effort to reduce
them is good for the environment. These efforts include minimizing packaging to
reduce waste, prioritizing recycling or using products of local origin. These
practices not only save money, but they also save the planet.
2. Philanthropy
CSR
and corporate philanthropy are often confused, but there is an important
distinction between the two. Corporate philanthropy refers to the general
practice of a business that gives back to others, usually through charitable
donations. CSR is a broader strategy in which philanthropic efforts align and
are integrated into the overall mission and business practices of a company.
3. Ethical
labour practices
This
is quite simple: CSR programs favor fair and ethical treatment of employees.
Ethical treatment includes ensuring employee safety, promoting a healthy
workplace and other practices that contribute to the well-being of employees.
4. Economic
responsibility
Economic
responsibility is a term used to describe ethical financial practices in
business. Of course, while all companies are legally required to pay taxes in
one way or another, companies with an established CSR program pay close
attention to how the money they pay in taxes is used for the benefit of their
surrounding communities.
It
is important to note that all economic responsibility does not occur outside
the walls of your company, as you wish. An essential aspect of economic
responsibility is to provide employees with fair and competitive wages to
ensure their well-being and their ability to support themselves and their
families.
Reference
Baker,
M. (2004) “Corporate Social Responsibility – What does it mean?” Available at: http://www.mallenbaker.net/csr/definition.php
Corporate
Social Responsibility (2013) Investopedia, Available at: http://www.investopedia.com/terms/c/corp-social-responsibility.asp#axzz2A54oj5IY
Simpson, J. & Taylor, J.R. (2013) “Corporate Governance
Ethics and CSR” Kogan Page
Yasin, E., 2019. CORPORATE SOCIAL RESPONSIBILITY (CSR)? IS THAT WHAT IT’S CALLED.
[Online] Available at: http://ripplezoo.com/2019/09/13/corporate-social-responsibility-csr-is-that-what-its-called/
[Accessed 9 January 2020].







