Corporate Social

Responsibility and
Good Governance
What’s inside?

1. What Is Social Responsibility?

2. What Is Corporate Social Responsibility Or CSR?
1. CSR and the People
2. CSR and the Environment
3. What Is Good Governance?
1. Transparency and Responsiveness
2. Accountability
3. Sustainability
4. Summary
Whenever one thinks about companies, they
think of organizations that work to provide
products and make a profit. Some
corporations do operate this way purely, but
there has been a growing movement to push
for more than just economic growth. But how
exactly can a company do more than just
earn a profit? That's where the concepts of
good governance and social responsibility (or
corporate social responsibility, to be exact)
come in.
What Is Social Responsibility?
In a nutshell, social responsibility is the idea that
we, as individuals, must work together for the
benefit of society. While we are responsible for our
own well-being, we also affect other people's lives,
directly or indirectly. For example, using large
amounts of electricity at home increases our carbon
footprint, which affects everyone on a global scale.
Because of this, social responsibility insists that we
have a duty to look out for other people by
minimizing our impacts on others and the
environment.
One can achieve social responsibility through either
passive or active methods.

 Passive Methods - Passive methods involve

minimizing the potential harms that you may have
been causing in your daily routine, such as
walking to work as opposed to driving a car to
minimize carbon monoxide emissions.
 Active Methods - Active methods involve the
person going out of their way to positively impact
the environment. This could be done by working
for an environmental nonprofit or signing up for a
local clean-up drive.
But individuals aren't the only ones required
to maintain social responsibility. Since the
1970s, there has been a push for companies
and businesses to engage in socially
responsible actions. This is known today as
corporate social responsibility, and it's what
could potentially solve many of the world's
current problems.
What Is Corporate Social Responsibility Or CSR?
Corporate social responsibility states that
businesses should not only look to gain profit
but also benefit people and the environment.
This essentially creates the triple bottom line
that every company must strive to meet -
profit, people, and the planet. Let's take a
deeper look into the two latter concepts,
people and the planet.
CSR and the People
When a company does business, there are multiple
stakeholders involved with every transaction. From
the employees that supply the products or services
to the customers that purchase them, many people
are affected by a single company's operations.
And even if they aren't directly involved with the
business, they could still be affected too. For
example, the local communities surrounding
factories are potential stakeholders due to them
feeling the environmental effects potentially caused
by pollution.
Since companies affect the lives of millions
every day, the goal for a socially responsible
one is to bring as much of a positive impact
to the people as possible. This is also known
as corporate citizenship. CSR in this manner
can be achieved in multiple ways depending
on who the company wishes to prioritize
first.
Improving Working Conditions And Labor Practices
For Employees
The employees are just as responsible for the success of a
company as the board of directors. Many companies have realized
the importance of treating their employees fairly, and as such
have launched CSR programs in line with this. For example, more
and more companies have started to provide healthcare benefits
to their employees. A good example of this is Starbucks, a
company that even offers health benefits to part-time employees.
Small businesses can also improve the lives of employees through
simpler means. Improving employees' working conditions can
increase productivity, raise morale, and give them a safer
environment to work in. This could be done by installing fire
alarms or purchasing safer equipment and gear for workers to use.
Valuing the Customer
Customers are the final link in the supply chain and
are responsible for the majority of many companies'
profits. Companies can improve the living conditions
and provide benefits to customers in various ways.
The simplest way would be by improving the
company's products. The product could include
more features or come at a lower price.
In certain industries, companies could benefit the
customer by being more accessible. For example,
pharmaceutical companies could offer a wider array
of OTC drugs in small communities.
CSR and the Environment

It's no secret that large companies emit toxic

gases and dump hazardous waste into our
water streams on a daily basis. This not only
ruins the living conditions for those living
today but also makes it even more difficult
for future generations to adjust accordingly.
As one of the world's biggest social issues to
this day, environmental pollution leads to
other potential crises such as climate change.
Transitioning Towards Renewable Energy Sources

One of the best ways for a company to minimize its carbon

footprint is by using more renewable sources of energy.
Modern technologies allow us to harness the power of wind
and the sun to generate electricity at large scales. Many
countries have even made it their goal to fully run on
renewable energy, with countries such as Portugal and
Norway having already achieved it.
Sourcing energy from renewable sources, however, is a heavy
investment for many companies. This is the reason why many
companies refuse to transition to this day. Eventually,
however, associations such as the United Nations are hoping
for environmental sustainability through the use of
renewable energy, as it is key to any company's value chain.
What Is Good Governance?

Good governance in any company requires

that the entity's governing body (usually the
board of directors) is transparent,
responsive, sustainable, and can be held
accountable for their actions.
Transparency and Responsiveness

While given the power of decision-making, the

board of directors must listen to the ideas of the
members. They must also be able to provide ample
information as to how and why decisions are made.
This is important because, sometimes, governing
entities decide to chase a profit rather than be
socially responsible. Resorting to child labor and not
prioritizing employees' human rights are just some
examples of the lengths that some companies go to.
This leads us to our next point - accountability.
Transparency and responsiveness can also extend
past internal management. Companies such as
Unilever aim to improve their public relations by
showcasing their positive social impact as well as
environmental impact. For example, the company
has partnered with the World Wildlife Fund to
protect forests. They also work with organizations
such as the Rainforest Alliance on projects such as
landfill and greenhouse gas emission reduction. This
business strategy not only benefits the company
from a marketing standpoint but also comes with
pragmatic benefits.
Accountability

The governing body must be accountable for the

decisions that they make. Implementing decisions
come with consequences, and the board must be
able to take responsibility for whatever happens.
This means that all business practices should be
ethical and in line with all stakeholders' objectives.
Meeting ISO requirements and understanding
environmental responsibility are just a few
examples of this concept.
Sustainability
Corporate sustainability refers to operating a business
without sacrificing or harming the environment in the
process. To an extent, many companies cannot operate
without emitting waste or using non-renewable energy
sources, so their goal is to minimize the use of these
methods as much as possible. For a company to be
sustainable, it needs to have sufficient environmental
management.
Because many older companies find it difficult to transition
towards cleaner energy and operations, many newer startups
have adopted what's known as sustainable development. This
allows the scaling of the business while keeping in mind the
integrity of the environment.
Summary

Corporate social responsibility is a concept

that's slowly being integrated into even the
biggest of companies. It aims to benefit both
society and the environment while also
offering benefits for the company itself.
Whether they're international conglomerates
in New York or small startups across the
street, companies could benefit from
adopting this framework.
 THE END
THANK YOU!!!