What is Corporate Social Responsibility?
Corporate social responsibility (CSR) is an umbrella term for a company’s activities that consider the effects of their business activities on society. It’s an effort to improve the health and quality of life for stakeholders beyond the company itself. It’s not just a marketing tactic—it’s a fundamental transformation of the way a business operates. So, CSR is an effort to expand the corporate reach beyond the bottom line to improve society at large. It’s the result of a corporation’s desire to be a good corporate citizen. Good corporate citizens don’t just think about improving the bottom line; they also care about the larger community and its future generations.
Why is Corporate Social Responsibility Important?
Businesses are part of society; therefore, it is important for businesses to be socially responsible. This means having a positive impact on society through your business activities. For example, if you manufacture products that negatively affect people’s health, you can improve the health of your customers by offering alternative products or improving the health of your employees by offering them training and a safe work environment. This way, your business can have a positive impact on society through a change in your activities.
How to Do Right by the Company and your Employees in the Process
Start by understanding that your employees are part of the CSR process, just like customers are. If they are doing their jobs properly and safely, they will help to make your CSR efforts successful. So, it’s important to make sure that your company culture supports CSR. Ensure that all employees feel comfortable speaking up when they feel something is not right or where they are not being supported in their work. This is especially important if your company has a reputation for doing good. Look for opportunities to give back to the communities where you are located. This could be through volunteer programs, donations to charity funds, or sponsorships of events. Look to your community and find ways to give back.
What can be done as a company?
Due diligence and analysis of ESG aspects – act to locate investment opportunities that have an economic benefit and environmental or social benefit.
Every company can find investment opportunities that match its core values and help its environment.
Mapping of gaps along with analysis – according to our experience, it is recommended to do comprehensive and in-depth ESG reviews.
They provide the reviewed company with an excellent situational picture of the performance and gaps in the field.
After collecting the data and insights, work on a plan to respond to the gaps obtained from the analysis. Their implementation will improve the company’s performance.
As you can see, becoming a socially responsible business is a commitment that goes beyond the bottom line. You must have a clear strategy for how you will achieve your goals, and you must be willing to invest time and effort to see those strategies through. Investing in CSR is like investing in the future of your company, the employees who work there, and the community where the company is based.
Auren Israel, Consulting Department