What is CSR?
Corporate Social Responsibility (‘CSR’) is a business concept that outlines a company’s commitment to carry out business in an ethical way this can be done through initiatives that can impact the following positively:
- The workplace
- Market place
What are The Benefits of Implementing CSR Policies?
By implementing CSR a business operates in ways that enhance society and the environment instead of negatively impacting upon them. CSR is important to both businesses and consumers and is beneficial in raising morale amongst employees in the workplace.
Who Benefits from CSR?
Stakeholders: if a company implements CSR initiatives to be more socially responsible, they first need to be accountable to the shareholders/stakeholders of a company as well as itself. By doing so CSR adds value to a company and contributes positively to stakeholders.
The public: by enacting CSR policies a business can better impact the environment and community around it. Employing locally and using sustainable local products is one way in which a business can do this.
What are CSR Policies and Best Practice?
Larger businesses are more likely and more capable of having and sustaining the best CSR practice.
This can include environmental policies in place and how they are adhered to as they are better set up to do so than medium or smaller businesses. An environmental statement or policy is written and signed by a senior manager.
This policy outlines objectives, aims and principles about the environmental effects of operations.
This policy communicates the proposed impact of a project on its surrounding environment. If a business employs good practice when dealing with CSR (also known as corporate citizenship), and shows conscientious practice towards the kind of impact they may have by reducing environmental impact through ethical management, the CSR can help to benefit a business in a range of ways including:
- It helps to improve performance.
- Builds trust with customers and employees.
- Increases competitive advantage.
- Builds a positive image of a reputable and ethical business.
- Avoids wasting cost on energy and fees that are not necessary.
Guidelines For Introducing and Promoting CSR
Using HR teams is a helpful way to do so as well as using strategies to identify stakeholder relationships that are required for sustainable business successes.
Clarify areas and promote understanding of CSR to relevant people within the company and aligned business strategies with HR practices.
HR can also measure and evaluate CSR performance to deem the effectiveness and results of the policies within the business.
There are areas of CSR that are ratified in the laws of the UK such as employment laws. Although, legal responsibility often comes with a lot of voluntary strategies by a company to help support projects such as community-based projects etc.
Why Does Corporate Social Responsibility Matter?
CSR matters because it addresses wider societal issues that both matter to and impact human beings.
Social value supersedes financial transactions and instead promotes health, well-being, inclusion, and the empowerment of people.
This goes above and beyond the traditional aspects of corporate responsibility. In adhering to CSR and implementing best practices a business sees benefits in terms of brand enhancements and builds employee engagement.