Corporate Social Responsibility Definition:
Corporate Social Responsibility (CSR) is a type of business self-regulation norms, which are designed and integrated with business model of the company. CSR focuses on the ethical behavior of business. It promotes transparency in conversation among the actors of the company: customers, suppliers, shareholders, banks, insurers, also local residents, governments, communities, associations, etc. CSR translates into ethical and transparent behavior which:
- Contributes to the sustainable development, including health and welfare of the society.
- Considers the expectations of stakeholders (individual or group with an interest in the judgments or actions of an organization: suppliers, customers, shareholders, employees, communities, media, NGOs, etc.).
- Complies with the laws in force while being consistent with the international standards of behavior (example: standards for the work of the International Labor Organization).
- Is integrated throughout the Organization and implemented in its relations.
Importance of Corporate Social Responsibility:
If you have questions like, why is Corporate Social Responsibility important for businesses? Why is the impact of Corporate Social Responsibility to a business? How CSR help in business or company growth, then here we will discuss on it.
When companies conduct their activities so economically, socially and environmentally responsible and do it in a transparent, this helps them succeed, especially by affirming common values and enhancing social acceptability. Management and mitigation of social and environmental risks are becoming increasingly important for business success abroad, since the loss of the social acceptability of a business can have a significant impact, either on its share or net income. For example: Canadian companies take advantage of global business opportunities, we realize more and more that the integration of responsible business practices to investments and activities abroad is not only beneficial for the economies and communities local, but also a commercial logic unassailable.
Corporate social responsibilities are extremely important for companies to sustain in business world. Its vision and respect to moral values helps business to build a long lasting and long term brand. For example: when company is discussing some thoughts on current affair in social media; may be related to local or global matters; which has no direct connection with sales and profits of an organization. In such scenario, company demonstrate its thoughts, vision, respect and social responsibility which helps to gain trust, respect from consumers. Overall respect towards moral values indirectly helps company to view its rising numbers on sales and customer charts.
Benefits of Corporate Social Responsibility:
Below are some of the important Corporate Social Responsibility benefits you intend to receive when doing business:
Improve Financial Performance: According to the studies of Harvard University, It is observed that company growth rate is increased by 4 times and employee by 8 times when incorporating corporate social responsibilities.
Improve Brand and Reputation: A social responsibility of the company plays a vital role in building good brand and reputation. It is observed that public image of the business is improved and get better when following its social responsibility.
Growth in Sales and Customer: A loyalty and responsibilities of the companies directly impact its sales. For example: when customer purchase some product for first time and in case if he is not happy due to any reason like defect, shape, colour, etc. In that scenario, if company follows its responsibilities to make customer happy with good return policies, it’s a win-win game for the business; in such cases customer will return by experiencing company’s loyalty and hence sales will growth.
Attract and Retain Employees: Companies with strong CSR always find easier in retaining or recruiting employees. It is easier to win the heart of employees particularly when a company is rated on higher side for moral and social values.
Advantages of Corporate Social Responsibility:
- Experience satisfaction from employee’s when working for organization which has strong reputation in moral values.
- Thousands of researches have proven that a customer attitude toward company is improved with strong CSR.
- CSR has proven that a company doesn’t have to spend money on expensive campaign’s and advertisements. Instead company generate huge amount of free publicity and mouth advertising.
- CSR activities results are not for short term. CSR will help you to achieve long term goals of an organization.
- CSR helps you to give more success stories on business continuity plans. It is also known as “Shaping Sustainable Society”.
Types of Corporate Social Responsibility:
Below is the list of different types of CSR activities which companies can take initiatives. Here are some of the types listed based on wide categories of CSR activities:
Environment: Companies can participate in reducing the carbon footprint. Also encouraging and implementing go-green methods in the society.
Philanthropy: Companies can take initiatives by donating fraction of their earnings to local and national charitable trust as a part of social responsibility.
Labor Ethics: Business can demonstrate its fair an ethical practice toward employees with differs from countries labor law as a part of their corporate responsibility.
Examples of Corporate Social Responsibility:
Let us see some of the CSR examples which companies take participation toward morality of this universe.
1. Google: Internet search giant and one of the world’s largest corporations have taken an initiative of program called “Google Green”. This activity focus on renewable power and efficient usage of resources. Company has viewed a fall of more than 50 percent of power consumption in their data centers.
2. Xerox: Printing giant company has taken an initiative in “Community Involvement programs” for supporting and donation by involving employees directly. Company has introduce billable hours for volunteering efforts for charitable activities like habitat for humanity, etc; Funds raised by billable hours of employees volunteering activities are then donated to charitable trust. Xerox has earmarked charity of millions of dollars by this community involvement program.
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