Corporate social responsibility Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance,

or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has developed the Principles for Responsible Investment as guidelines for investing entities.

The Need for Corporate Social Responsibility Although some opponents have lambasted CSR practice for being mere greenwash or an exercise in publicity, a great volume of CSR research also concludes that companies have experienced a range of bottom-line benefits including: increased sales and market share; strengthened brand positioning; enhanced corporate image and clout; increased ability to attract, motivate and retain employees; decreased operating costs; and increased appeal to investors and financial analysts. The Importance of Corporate Social Responsibility Companies that simply do everything they can to boost profits will end up increasing social welfare. In circumstances in which profits and social welfare are in direct opposition, an appeal to Corporate Social Responsibility (CSR) will almost always be ineffective, because executives are unlikely to act voluntarily in the public interest and against shareholder interests, says Professor Karnani. He adds that, by engaging in social issues, managers are sacrificing profits and essentially imposing a tax on shareholders. Therefore, Corporate Social Responsibility conflicts with creating better corporate governance, since the managers job is to act in the shareholders interest. Clearly, Professor Karnani views this as a mainly financial issue and suggests that the only way CSR could work is with strict regulations, such as watchdogs and punitive actions for unacceptable social behavior. However, the professors point of view sparked a large response in defense of CSR. Thomas Lyon, the director of the Erb Institute for Global Sustainable Enterprise at the University of Michigan, agrees there should be consequences for unacceptable behavior, but feels CSR is essential to the business world. He replies, The heart of his [Professor Aneel Karnani] argument lies in the assumption of a neat separation between markets and politics. In this idealized world, politics can be counted on to deliver the regulations needed to rein in corporate greed and malfeasance. Then corporations can safely be left in the hands of managers whose sole interest is maximizing profits. The problem with this perspective is that government failure is just as common as market failure.

Lyon feels the amount of lobbying between special interest group and the government has gotten out of control. The groups receive special treatment allowing a breakdown in regulation. Basically, Lyon says, corporations are the reason for government failure by blatantly ignoring any regulations imposed on them. He insists corporate political activity become a large part of CSR. However, Mr. Lyon and Prosser Karnani dont mention the essential aspect of corporate responsibility and its benefits. The essence of CSR in business is whats known as the triple bottom line: People, Planet, and Profit. This strategy requires mutual benefit between corporation and non-profit, authenticity, and credibility. CSR is a powerful way to maintain a good corporate reputation but is not a silver bullet. It has become a widely accepted strategy by both corporations and consumers. Increasingly we are seeing Corporate Responsibility and more specifically sustainability become a significant part of Corporate Strategy. It is not uncommon these days to find c-level executives dealing with the issues and opportunities of Corporate Responsibility and sustainability. Rufus Bullough, an Associate in Acre Resources Limited Corporate Responsibility and Sustainability team, says. Eighty-three percent of U.S. consumers want more of the products, services and retailers they use to benefit causes, according to the new 2010 Cone Cause Evolution Study. 85 percent have a more positive image of a product or company when it supports a cause they care about, and 80 percent are likely to switch brands, similar in price and quality, to one that supports a cause. These statistics prove that, while there is no guarantee, CSR can be advantageous for corporations and the world around them. Consumers support the products and services that benefit causes. Corporations are adding CSR as a core business strategy, increasing profits and their reputation. Non-profits are receiving assistance with awareness, as well as monetary resources. As CSR progresses, regulations will likely be put in place to prevent corporate greed and unacceptable behavior. However, even with regulations in place, managers are much more likely to engage in a business strategy that, if done well, boosts more than just profits. Professor Karnani believes corporations are too selfindulgent to properly execute a business strategy where profit isnt the only benefit. Managers see an opportunity to improve on a number of levels with CSR and consumers praise those companies. CSR is no longer a novelty. Its an opportunity.

The Benefits of Corporate Social Responsibility

CSR and its advantages According to a survey published in 2008 by Economist Intelligence Links (Canada), carried out with 1200 managers from everywhere in the world, and who intended to benefit from the implementation of strategies and policies in the field from the RSE, the six principal greater advantages mentioned were:

- capacity to attract new customers, - a greater value for the shareholders, - an increased profitability, - better capacity to manage the risks, - products and processes of better quality and, - capacity to recruit first choice employees.

But there are still other advantages according to us.

Purchases : Better access to the resources, reinforcements of the relations with the suppliers, pride of collaboration Commercial activities : Better access to capitals, profitability, control of management, pride of your customers Operations : Reduction of the social and environmental impact of the activities, relation between good vicinity and local associations, better comprehension of the activities of your company Credit : Safety of the credits, valorization of your company and profitsharing of the shareholders present and/or future Marketing : Development of the markets, existing and new, reinforcement of the image of the brands, competitive advantage, better comprehension of new customers needs by a reinforced proximity, information on the markets Corporate : This term is unfortunately not well translated in the French denomination RSE (CSR in English stands for Corporate Social Responsibility), but your corporate identity is only improved by it Institutions : Influence and recognition, better social and citizen investments, development of new networks and channels of communication, reputation

Management : Better risk managements, put in legal conformity (mandatory) and even more (the RSE being voluntary), strategic development and organizational training (the quicker you are there, the less delay you will have to catch up ), innovation Human resources : Resourcing, management of the questions on hygiene and on safety, development of the human capital, staff safety (when you have what you need), pride of this one, which will not want to leave any more or will want to come to work for you Shareholders : Fidelity since the intangible asset of your company will increase, pride.

On a graph

In company.

are represented part of the interactions between the various departments in the