This article from Tito Peps will discuss about Corporate Social Responsibility and how it affects business. This will also explore the different ways corporations do social responsibility and the benefits of this approach to business. Finally, this post intends to discuss how society may be influencing corporations’ decisions on what social responsibility means to them, which could lead to more questions as time goes on.
What is Corporate Social Responsibility?
Corporate social responsibility (CSR) is defined by the Free Dictionary as “a company’s duty to serve the ethical interests of shareholders by responsibly addressing social and environmental externalities presented in their business operations, usually measured by performance indicators such as the Sustainable Development Goals and The Natural Step.” Other definitions for CSR include the following: “The commitment of business to contribute to sustainable development (United Nations, 2002). “The integration of social and environmental concerns into a company’s business practices and operations” (Business for Social Responsibility, n.d.).
How does Corporate Social Responsibility apply in Business?
A large part of CSR in business is the ethical treatment of employees. Several studies have shown that happy employees tend to work harder; therefore, it would make sense for employers to treat their employees well. In addition, some companies provide meaningful work opportunities to older workers who may be losing the chance to work in other fields. Some companies have even created internship programs for college students who need an entry-level position. These help keep these professionals employed and also help the company with a more positive public image.
CSR also includes a company’s interaction with its customers, as well as the environment and community. For example, some corporations give discounts to customers who bring bags from home to avoid using plastic ones that take longer to decompose and are more harmful to the environment. A business’ interaction with the environment can take many forms, but it is most likely that they interact in some way. Some companies may donate money to wildlife conservation or preserve large swaths of land in order to reduce deforestation. Others may use reclaimed lumber or recycled material to reduce the amount of tree logging.
What is the difference between Corporate Social Responsibility (CSR) and Corporate Citizenship?
Corporate citizenship refers to the ways in which a corporation interacts with the community in which it exists. Corporate Citizenship is more in-depth than CSR because it promotes ethical business practices that benefit all members within a community, not just those who are directly involved with corporate activities. In addition, corporate citizenship also refers to how businesses interact with their customers and employees and how they treat consumers and citizens. It also includes social responsibility issues relating to local, statewide, national and international communities.
Why is Corporate Social Responsibility (CSR) Important?
Corporate Social Responsibility has become a part of the conversation in business, especially as people begin to realize how corporations can affect their daily lives and that they are not directly responsible for their actions. For example, when corporate practices began to be seen as environmentally unfriendly, the public began to complain. Some companies were forced to change their ways and more companies today are making choices based on what is best for both the environment and its customers. In addition, the recent spotlight on how Monsanto company creates genetically modified organisms (GMOs) has brought attention to corporations that were previously viewed as being above reproach. Once the public learned about Monsanto’s practices, a shift in perception occurred.
Another reason why corporations want to do good things is that it increases public trust. Before the investigation, many people assume that corporations are run by businessmen who care more about making money than caring for their employees or the communities in which they operate. In general, this is not true, and it tends to be a common misconception. However, if organizations are seen as providing benefits to society and their customers, then the public tends to view them as being one of many good companies out there. This helps to increase trust between the company and its customers.
In business today, corporate social responsibility is an important issue because of the growing numbers of people for whom it affects them personally and on a larger scale. Corporations are taking steps to ensure that their social and environmental responsibilities are to be addressed — not ignored — with growth demands around the world requiring corporations to consider how their business practices affect other parties besides themselves.
To conclude, businesses today are more aware of the importance of corporate social responsibility. By following corporate social responsibility practices, they are not only honoring their customers and employees but also contributing to society. There is no denying that CSR is an integral part of the business. There is a growing number of people who are affected by corporate social responsibility on a daily basis. It affects the general public as well as individual companies in the global marketplace, which is why it is so important to be aware of corporate social responsibility practices. Companies such as Walmart have responded in record numbers to ensure that their food sources are safe for consumption by consumers. Additionally, the media has also played a role in CSR as well by helping to expose companies such as Monsanto when they were found to be creating dangerous products. Without this media scrutiny, many of these practices would continue unimpeded which could have negative long-term effects on the country’s economy.
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