What Is Corporate Social Responsibility?

In today's socially conscious environment, employees and customers place a premium

on working for and spending their money with businesses that prioritize corporate social
responsibility (CSR).
CSR is an evolving business practice that incorporates sustainable development into a
company's business model. It has a positive impact on social, economic and
environmental factors.
Katie Schmidt, the founder and lead designer of Passion Lilie, said CSR can positively
impact your business by improving your company image, building your brand and
motivating you as a business owner.
"What the public thinks of your company is critical to its success," Schmidt told Business
News Daily. "By building a positive image that you believe in, you can make a name for
your company as being socially conscious."
As the use of corporate responsibility expands, it is becoming extremely important to
have a socially conscious image. Consumers, employees and stakeholders are beginning
to prioritize CSR when choosing a brand or company. They are holding corporations
accountable for effecting social change with their business beliefs, practices and profits.
"A robust CSR program is an opportunity for companies to demonstrate their good
corporate citizenship … and protect the company from outsized risk by looking at the
whole social and environmental sphere that surrounds the company," said Jen Boynton,
CEO of B Targeted Marketing Co.
To illustrate how critical social responsibility has become, previous research by Cone
Communications found that more than 60% of Americans hope businesses will drive
social and environmental change in the absence of government regulation. Nearly 90%
of the consumers surveyed said they would purchase a product because a company
supported an issue they care about. More importantly, roughly 75% will refuse to buy
from a company if they learn it supports an issue contrary to their own beliefs.
Consumers aren't the only ones who are drawn to businesses that give back. Susan
Cooney, head of global diversity, equity and inclusion at Symantec, said that a
company's sustainability 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," said Cooney. "Coming out of the
recession, corporate revenue has been getting stronger. Companies are encouraged to
put that increased profit into programs that give back."
In addition to a better company image, Schmidt said sustainable development can help
your business financially. For example, using less packaging and less energy can reduce
production costs.

4 corporate responsibility types your business can practice

Recognizing how important socially responsible efforts are to their customers,
employees and stakeholders, many companies now focus on a few broad CSR
categories:
Environmental efforts: One primary focus of corporate social responsibility is the
environment. Businesses, regardless of size, have large carbon footprints. Any steps
they can take to reduce those footprints are considered good for both the company and
society.
Philanthropy: Businesses can practice social responsibility by donating money,
products or services to social causes and nonprofits. Larger companies tend to have a
lot of resources that can benefit charities and local community programs. It is best to
consult with these organizations about their specific needs before donating.
Ethical labor practices: By treating employees fairly and ethically, companies can
demonstrate their social responsibility. This is especially true of businesses that operate
in international locations with labor laws that differ from those in the United States.
Volunteering: Attending volunteer events says a lot about a company's sincerity. By
doing good deeds without expecting anything in return, companies can express their
concern for specific issues and commitment to certain organizations.
Building a Socially Responsible Business
Although being socially responsible isn't free – it can cost time, money and resources –
it is important to remember that every little bit can help the environment. Schmidt said
you can start making an impact on society by donating a small portion of your sales to
a cause you care about.
"Even 5%, though it might not sound like a lot, can add up to make a difference," said
Schmidt. "When thinking of ways to donate and give back, start local and then move
from there."
When initiating CSR, give your employees a voice by involving them in the decision-
making process. Create an internal team to spearhead the efforts and choose an
organization or cause they care about. Contributing to something your employees are
passionate about can increase engagement and success. Involving your employees in
the decision-making process can also bring some clarity and assurance to your team.
"If decisions [about CSR] 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."
Regardless of which strategies you use for sustainable development, Boynton said it is
important to be vocal. Let your consumers know what you are doing to be socially
conscious.
"Consumers deserve to share in the good feelings associated with doing the right thing,
and many surveys have found that consumers are inclined to purchase a sustainable
product over a conventional alternative," she said. "Announcing these benefits is a win-
win from both a commercial and sustainability perspective."
What to avoid when creating a Socially Responsible Business Model
Becoming a socially responsible business can be simple, but there are a few things to
avoid in the process. Businesses should avoid participating in charitable efforts that are
not related to their core business focus or ethical standards in any way. Instead of
blindly sending money to a completely unrelated organization, find a nonprofit that your
company believes in or a project in your community.
Avoid using CSR opportunities solely for marketing purposes. Schmidt said running a
corporate responsibility campaign as a quick marketing scheme can backfire when your
business doesn't follow through. Instead of employing a one-time act, you can adopt
socially responsible business practices over time. Schmidt said employees and
consumers tend to react positively to companies that embrace long-term social
responsibility.
If you are considering sustainable activities that aren't legally required yet, don't wait.
By adopting socially responsible norms early on, you can set the bar for your industry
and refine your process. Undertaking CSR initiatives is truly a win for everyone involved.
The environmental impact of your actions will not only appeal to socially conscious
consumers and employees but can also make a real difference in the world.
https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

Talking in a Nutshell
 Corporate Social Responsibility is not only a concern of multinational companies
and giant firms. All businesses, big and small, have responsibilities toward the
society.
 The stockholder model of a corporation attributed to Milton Friedman views the
responsibilities of business as being threefold – economic, legal, and ethical
responsibilities.
 The stakeholder model of a corporation attributed with R. Edward Freeman
maintains that the firm must also consider the claims of other primary and
secondary stakeholders. It is mainly because the business organization does not
only relate with and affect its owners, it also has operational consequences to
the natural environment, the community where it operates, the employees, the
customers, and many other interest groups.
 The concept and practice of CSR basically disagrees with the stockholder model
while it agrees with the stakeholder model.
 The triple bottom line, which is an attractive phrase in CSR literature, pertains to
people, planet, and profit – the social, environmental, and economic concerns of
any business establishments.
 The CSR perspective stresses that the business institution’s responsibility does
not only consist in not doing the wrong thing but also in doing something right
for the community and the environment. From the CSR perspective, doing
something right must not just be born out of benevolence but out of a deep
sense of responsibility toward the other stakeholders of the business institution.
 As a form of criticism against CSR, it is deemed that it is full of promise;
however, in practice, CSR is reduced to a business strategy which makes the firm
more powerful and influential while justifying its questionable practices.