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Corporate social responsibility (CSR) refers to business practices involving initiatives that
benefit society. A business's CSR can encompass a wide variety of tactics, from giving
away a portion of a company's proceeds to charity, to implementing "greener" business
operations.
There are a few broad categories of social responsibility that many of today's businesses are
practicing:
1. Environmental efforts: One primary focus of corporate social responsibility is
the environment. Businesses regardless of size have a large carbon footprint. Any
steps they can take to reduce those footprints are considered both good for the
company and society as a whole.
2. Philanthropy: Businesses also practice social responsibility by donating to national
and local charities. Businesses have a lot of resources that can benefit charities and
local community programs.
3. Ethical labor practices: By treating employees fairly and ethically, companies can
doing good deeds without expecting anything in return, companies are able to express
their concern for specific issues and support for certain organizations.
"The next generation of employees is seeking out employers that are focused on the triple
bottom line: people, planet and revenue," Cooney told Business News Daily. "Coming out of
the recession, corporate revenue has been getting stronger. Companies are encouraged to put
that increased profit into programs that give back."[See Related Story: Social
Responsibility Tips for Your Business]
3. Target. Very often the idea of good corporate citizens can seem like a concept that is
completely removed from our day-to-day realities. Sure, mega-corporations can have
volunteer programs or philanthropic arms that focus on big-picture issues, but that seems so
highbrow. If that is how you think, then take a look at Target. While many shoppers may
think of it as just another big-box retailer, Target is more than just a place to buy tires and
milk.
Since 1946, Target has been committing more and more effort and assets toward local and
environmental support for the communities in which they have stores. Over the past several
years, the companys effortsfrom growing sustainable practices to educational grants
have amounted to 5 percent of its profit going to local communities. Thats $4 million each
week! In the area of education alone, Target has donated more than $875 million since 2010.
Can your company afford to give $4 million a week to good causes? Most likely the answer
is no, but the good news is that you dont have to. By supporting any good cause in your
community, you provide two important factors that pay dividends. You have employees who
are proud to work for you and clients who are proud to be associated with you. The financial
return of either can be many orders of magnitude.
Bring It Home. Many of these programs, such as allotted time for volunteer work and
community donations (which Autodesk does with its Autodesk Foundation) can begin as
small-scale efforts.
The cost to the bottom line will quickly be reimbursed when you see your socially active
employees producing more and your supported community engaging with your firm. For the
survival of this planet, its crucial for people to do their part to improve the world. The bonus
is that they will get so much in return.
Ben and Jerry's, for instance, uses only fair trade ingredients and has developed a
sustainability program for dairy farms in its home state of Vermont. Starbucks has created its
C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably
grown and processed coffee by evaluating the economic, social and environmental aspects of
coffee production. Tom's Shoes, another notable example of a company with CSR at its
core, donates one pair of shoes to a child in need for every pair a customer purchases.
However, Stevens said companies need to really understand what their core social purpose is
and how that aligns with their stated mission, to create a cohesive CSR strategy.
For example, Stevens said that Kashi, a Kellogg's brand, wants to increase organic farming
and is one of the few certified organic cereals. Since only 1 percent of U.S. farmland is
actually organic, the breakfast brand worked with Quality Insurance International to help
certify new organic farmers across the nation.
"If decisions [about social responsibility] are made behind closed doors, people will wonder
if there are strings attached, and if the donations are really going where they say," Cooney
said. "Engage your employees [and consumers] in giving back. Let them feel like they have a
voice."
Stevens, of WeSpire, reminded business owners that the corporate world has more power than
many realize, and using that power to improve the world can bring people of all backgrounds,
ages and interests together.
"Given their power and sheer size, corporations can solve big social problems and have a
huge impact," she said.