What is Corporate Social

Responsibility?
By  Sammi Caramela, Business News Daily ContributorJune 27, 2016 12:12 pm
EST
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Credit: Kokliang/Shutterstock

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.

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 also demonstrate their corporate social responsibility. This
 is especially true of businesses that operate in international locations with
labor laws that differ from those in the United States.
4. Volunteering: Attending volunteer events says a lot about a
company's sincerity. By doing good deeds without expecting anything in
return, companies are able to express their concern for specific issues
and support for certain organizations.

Why CSR matters

Liz Maw, CEO of nonprofit organization Net Impact, noted that CSR is
becoming more mainstream as forward-thinking companies embed
sustainability into the core of their business operations to create shared
value for business and society.

"Sustainability isn't just important for people and the planet, but also is vital
for business success," said Maw, whose company connects students and
professionals who want to use business skills to do social good.
"Communities are grappling with problems that are global in scope and
structurally multifaceted — Ebola, persistent poverty, climate change. The
business case for engaging in corporate social responsibility is clear and
unmistakable."

"More practically, [CSR] often represents the policies, practices and

initiatives a company commits to in order to govern themselves with honesty
and transparency and have a positive impact on social and environmental
wellbeing," added Susan Hunt Stevens, founder and CEO of employee
engagement platform WeSpire.
As consumers' awareness about global social issues continues to grow, so
does the importance these customers place on CSR when choosing where to
shop. But consumers aren't the only ones who are drawn to businesses that
give back. Susan Cooney, founder of crowdfunding philanthropy
platform Givelocity, said that a company's CSR strategy is a big factor in
where today's top talent chooses to work.
"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]
Examples of corporate social responsibility
While many companies now practice some form of social responsibility, some
are making it a core of their operations. 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.

Practicing what you preach

Undertaking socially responsible initiatives is truly a win-win situation. Not
only will your company appeal to socially conscious consumers and
employees, but you'll also make a real difference in the world. Keep in mind
that in CSR, transparency and honesty about what you're doing are
paramount to earning the public's trust, Givelocity's Cooney said.

"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.

Additional reporting by Chad Brooks and Nicole Fallon

Taylor. Some source interviews were conducted for a
previous version of this article.
Definition of corporate social responsibility (CSR)
Movement aimed at encouraging companies to be more aware of the impact of their business on the
rest of society, including their own stakeholders and the environment. [1]

Corporate social responsibility (CSR) is a business approach that contributes to sustainable

development by delivering economic, social and environmental benefits for all stakeholders.

CSR is a concept with many definitions and practices. The way it is understood and implemented
differs greatly for each company and country. Moreover, CSR is a very broad concept that
addresses many and various topics such as human rights, corporate governance, health and safety,
dec venvironmental effects, working conditions and contribution to economic development.
Whatever the definition is, the purpose of CSR is to drive change towards sustainability.

Although some companies may achieve remarkable efforts with unique CSR initiatives, it is difficult
to be on the forefront on all aspects of CSR. Considering this, the example below provides good
practices on one aspect of CSR – environmental sustainability.

Example

Unilever is a multinational corporation, in the food and beverage sector, with a comprehensive CSR
strategy. The company has been ranked ‘Food Industry leader’ in the Dow Jones Sustainability
World Indexes for the 11 consecutive years and ranked 7th in the ‘Global 100 Most Sustainable
Corporations in the World’.
One of the major and unique initiatives is the ‘sustainable tea’ programme.  On a partnership-based
model with the Rainforest Alliance (an NGO), Unilever aims to source all of its Lipton and PG Tips
tea bags from Rainforest Alliance Certified™ farms by 2015.  The Rainforest Alliance Certification
offers farms a way to differentiate their products as being socially, economically and environmentally
sustainable. [2]
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