CORPORATE SOCIAL RESPONSIBILITY (CSR)
CORPORATE SOCIAL RESPONSIBILTY (CSR)
“Corporate Social Responsibility” is a movement that has been around for many years. Some of the earliest articles on the subject were published in the 1960s and some information may even date back 150 years in the United Kingdom through benevolent capitalism. The term “Corporate Social Responsibility” (CSR) came into common use during the 1970s when large multi-national companies formed. The concept is essentially a business approach that focuses attention not only on its responsibility to make a profit but also its responsibility and role in society.
Definitions on the subject are available, and differ slightly. “A guide to corporate social responsibility” published by the University of
Miami defines CSR as:
a means of analyzing the inter-dependent relationships that exist between businesses and economic systems, and the communities within which they are based. CSR is a means of discussing the extent of any obligations a business has to its immediate society; a way of proposing policy ideas on how those obligations can be met; as well as a tool by which the benefits to a business for meeting those obligations can be identified
Sir Geoffrey Chandler, who wrote “Defining Corporate Social Responsibility”: Ethical Performance Best Practice, is commonly quoted in articles related to CSR for his reflection in the following sentence:
Thus, beyond making profits, companies are responsible for the totality of their impact on people and the planet.
Ideally in most definitions corporate social responsibility directs businesses to make morale and ethical decisions that will not affect the environment, people or the economy, while ensuring they are also making a profit. Often we refer to this as going above and beyond their obligations. In order to succeed in CSR the business must incorporate the values into its day-to-day operations. Also, the business must monitor their efforts and analyze the information to ensure a positive outcome.
A common term used in “Corporate Social Responsibility” is the triple bottom line: people, planet, profit. This refers to responsible environmental, social and financial business planning and operations. The business practice itself is transparent and self-regulating. “Corporate Social Responsibility” broadens the accountability of business to include the impacts it may have on people and the planet. Adherence to the law, ethical standards, and international norms are included in the development of a corporate social responsible business.
A CSR business will concentrate efforts around community growth and engagement, volunteering to eliminate any harmful business practices and ensuring that public interests are included in their decision making. Businesses and organization may use different terms to define their role in CSR. Common terms include ethical codes, social responsibility policies and principles for responsible business, that focus on ensuring the business follows best management practices.
Green corporate social responsibility focuses on environmental responsibility. Many professionals in the field believe that CSR has shifted more of its attention on environmental actions as compared to ten years ago when the attention was mainly focused on labor issues and philanthropy. There are more companies taking on new projects that center around environmental responsibility. Some good examples is the wide spread effort to become LEED (Leadership in Energy and Environmental Design) certified, meaning that the buildings operated by the company meet specific environmental standards. Green procurement policies are also appearing in the business sector, these policies direct businesses on how to buy products in an environmentally responsible way.
Some argue that ”Corporate Social Responsibility” inerferes with the main purpose of a business, making it more difficult to earn a profit. While others believe that a business can promote itself in a manner that many customers and stakeholders appreciate, so much so that people will choose a more responsible business even if it cost them more. Although Corporate Social Responsibility is debated at times, it still remains that it is a usefull tool for encouraging sustainable businesses and awareness throughout corporations.