What is Corporate Social Responsibility (CSR)?

According to ZipDo, 76 percent of businesses view implementing a Corporate Social Responsibility strategy as a way to reduce brand reputation risk. CSR enables brands to take accountability and use their business as a force for good. 

It plays an important role in a company’s brand perception, attractiveness to clients, investors, and employees, and overall company success. Keep reading to learn more about CSR and why it is important to implement corporate sustainability strategies in your business. 

What is Corporate Social Responsibility in Business? 

The term Corporate Social Responsibility (CSR) refers to a self-regulating business model. This business model helps businesses be more socially accountable to their stakeholders, the public, and themselves. Through practising CSR, businesses can be considerate of the impact they are having on every element of society, including environmental, social, and economic. 

Businesses that engage in CSR generally operate in ways that enhance the environment and society as opposed to contributing negatively to them. In other words, they consider people, planet, and profit in everything they do and implement a range of sustainability and societal initiatives within their operations. Some corporate social responsibility examples include Ben & Jerry’s and Starbucks. 

What is the purpose of Corporate Social Responsibility? 

There are lots of reasons why businesses would implement a Corporate Social Responsibility strategy. Namely, the demand for businesses to be more ethical and considerate of the environment and climate change. Corporate Social Responsibility also allows businesses to generate a positive impact and become societal changemakers.

Those companies with CSR strategies generally grow their businesses to a point whereby they can then give back to society. With this in mind, it is often larger corporations that implement CSR plans. However, smaller enterprises can get involved and behave more socially responsibly, too. 

There are lots of different types of corporate social responsibility. Businesses can choose to engage in any of the types, and lack of involvement in one aspect does not mean they are not a socially responsible brand. The categories span environmental responsibility, philanthropic responsibility, ethical responsibility, and financial responsibility. 

Why is Corporate Social Responsibility important? 

CSR is important because it drives and encourages businesses to not only think about generating revenue and profits but also to think about how they can use their business as a tool for change. Companies that implement CSR often engage in positive practices like implementing ethical work labour practices, volunteer projects, charity work, and environmental initiatives. 

Looking past the positive impact on the environment and society, implementing a CSR strategy also has benefits for businesses. Activities that fall under the CSR umbrella can help forge stronger relationships between employees and brands, boost morale, and help employers and employees feel more connected to the world around them. CSR also helps businesses mitigate risks, engage employees, attract and retain talent, and entice investors. 

Summary

The advantages of introducing CSR for the environment, society, and your business growth are undeniable. Ultimately, CSR is an excellent way for businesses to give back to society and make a difference. If you want to make your business more ethical and socially responsible, the Diploma in Business Sustainability course will help you. 

The university credit-rated course dives into an array of important topics, from the circular economy to minimising impact throughout your supply chain, and how to implement CSR.