How Corporate Social Responsibility Can Boost Your Business Growth

Corporate social responsibility

Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "green washing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/cleantech, and various social welfare initiatives to benefit employees, customers, and the community at large. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

1. "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business"
2. An obligation, beyond that required by the law, for a business to pursue long term goals that are good for society
3. About how a company manages its business to produce an overall positive impact on society

Purpose

To identify and improve a company’s impact on society and the environment, while driving stronger business results such as brand enhancement, market differentiation, and employee satisfaction.

Attributes

1. CSR is a behavioural and programmatic approach to shaping company actions and strategy
2. CSR is more to do with the management of issues than the life cycle of the company or product or the setup of the company environment as a whole
3. CSR addresses shareholders management more than stakeholder management 
4. As aforementioned, CSR tends to emphasize the actions of the company e.g. CSR reports deal much more with the celebration of the past (as opposed to sustainability practices, which look towards the future.

So, CSR involves:

1. Conducting business in an ethical way and in the interests of the wider community
2. Responding positively to emerging societal priorities and expectations
3. A willingness to act ahead of regulatory confrontation
4. Balancing shareholder interests against the interests of the wider community
5. Being a good citizen in the community

There are four main parts to CSR

1. Economic - Responsibility to earn profit for owners
2. Legal - Responsibility to comply with the law
3. Ethical - Not acting just for profit, but doing what is right, just and fair
4. Voluntary and philanthropic –
• Promoting human welfare and goodwill
• Being a good corporate citizen contributing to the community and quality of life

In what ways has the idea of corporate responsibility changed over the last fifty years?

1. Responsibility is made because of movements and people in the company taking an initiative
2. Erosion of responsibility because they can lie to customers and do not have to pay
3. Government failing because do not put in the resources and time to prosecute corporations due to misdeeds
4. Greed and knowing how to manipulate the law keeps corporations from being held responsible
5. Regulations are being eroded as well

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